Study Guide and Quiz Answers

A company is usually unable to take advantage of economies of scale during the __________ stage of the product life cycle.A.SaturationB.IntroductionC.GrowthD.Maturity

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

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

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

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

What does a company's customer service department do?A.Promote the company to new groups of potential customers.B.Interact with customers after they have purchased the product.C.Receive payments from customers and handle the company's money.D.Handle employee-related procedures.

____________ 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 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 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.