Study Guide and Quiz Answers

Which of the following business ownership structures is the simplest and easiest to set up?A.A partnershipB.An LLCC.A sole proprietorshipD.A C corporation

A company that builds houses and a company that makes cars are part of the __________ industry.A.RetailingB.ExtractiveC.WholesalingD.Manufacturing

Which of the following types of business ownership has the highest personal liability risk? A. A partnership B. A sole proprietorship C. A C corporation D. An LLC Please select the best answer from the choices provided

Which of the following business ownership structures offers the best liability protection but higher taxes?A.A nonprofit corporationB.A C corporationC.A partnershipD.A sole proprietorship

A company that is organized by both product and function is using ________ organization.A.FlatB.HierarchicalC.MarketD.Matrix

What does a wholesaling company do?A.Sell products to individual consumersB.Sell products to companies that plan to resell themC.Manufacture products and sell them to retail companiesD.Transform land into capital

Eggs, toilet paper, and candy bars are examples of __________.A.Specialty goodsB.Convenience goodsC.Shopping goodsD.Unsought goods

____________ is a way to turn a company into a parent company with smaller retail outlets owned by independent operators.A.ManufacturingB.IncorporatingC.TaxingD.Franchising

Which of the following describes a saturated market?A.The prices of competitors are very high.B.Many people want this product and haven't purchased it yet.C.Most potential buyers have not heard of the product and don't know it exists.D.Most potential buyers already have a product that satisfies this need or want.

Your company manufactures children's toys, and you want to keep the prices as low as possible for individual consumers. Which of the following things could you do to keep prices low?A.Add subcontractors to the manufacturing process.B.Hire tradespeople.C.Keep the distribution chain short.D.Add companies to the distribution chain.