A separation between ownership Select one: O a sole proprietorship. O b. corporation O c. general partnership. O d. limited liability partnership 7 Se Khalid and Salim invested all their savings in a coffee shop they opened outside the SUC. They operated the business as a general partnership. After 11 months, the business went broke and Khalid and Salim were left with outstanding bills of OMR 37,500, which was more than their initial investment in the company. Khalid and Salim can: Select one: O a. lose only the total value of the assets actually used to operate the business. O b. lose only the funds they originally invested in their company O c. lose their personal assets as the result of their company's financial problems. O d. avoid any liability for these debts A separation between ownership and management is most likely to occur in a Select one: O a. sole proprietorship. O b. corporation O c. general partnership O d. limited liability partnership A is a company that has a proven business model and is willing to sell the rights to use the business model to others so that they can sell the same product or service within a given territory Select one: O a. licensor O b. licensee O c. limited partner O d. franchisor Next page theory states that a country should sell to other countries those products that it produces most efficiently and buy from other countries those products it can produce as efficiently Select one: O a. Absolute advantage O b. Comparative advantage O c. None of the above O d. Complete advantage The board of directors for a corporation is elected by its: Select one: O a managers. O b. stockholders, O c. employees O d. creditors Dumping is the practice of selling products in foreign markets at lower prices than what domestic firms are charging for the same product. Select one: O True O False N In a partnership, a partner (owner) actively manages the company and has unlimited liability for claims against the firm. Select one: O a associate O b. unlimited O c. limited O d. general Nex K Resource development The study of how to increase resources and to create conditions that will make better use of those resources. Select one: O True O False Next page 7 7 Frictional unemployment occurs because the economy is experiencing a recession Select one: O True O False Nex One difference between partnerships and sole proprietorships is that partnerships: Select one: O a have the advantage of limited liability. O b. take less work to form. . have a greater chance of long-term survival O d. are managed by an elected board of directors. pic 7" Nike its products in foreign countries, where labor is cheap and production sites are owned by other companies. This strategy allows Nike to experiment in new markets without incurring large start-up costs involved with building their own production facilities. Select one: O a Exporting O b. globally licenses O c. contract franchises O d. contract manufactures Economists study how people use resources to produce and distribute goods and services for consumption among competing groups and individuals Select one: O True O False Next pa 7 7 In Sur a large number of bakeries. These bakeries produce similar, but not identical, products. Some bakeries claim to have the best cheesecakes in town, while others brag about their cookies or specialty breads. The bakery market in Sur is an example of: Select one: O a. monopolistic competition O b. perfect competition O c. oligopoly. O d. monopoly An owner of a corporation is known as Select one: O a general partner. O b. stockholder. O c. director. O d. limited partner An advantage of forming a joint venture is: Select one: O a. a perpetual arrangement. O b. no shared costs or risk. O c. it's a great way to enter new markets without divulging any marketing or management strategy to the other member of the joint venture. O d. it's a good strategy for entering new markets where you have never had a presence ICT When two companies, for example, a software company and a fast-food restaurant company, decide to merge, the result is called a merger. Select one: O a linear O b. conglomerate O c. vertical O d. horizontal e Next page A merger involving a commercial bakery and a grocery retailer would be an example of a: Select one: O a. conglomerate merger O b. vertical merger. O c. linear merger. O d. horizontal merger. opic 7 One of the major disadvantages of a sole proprietorship is the Select one: O a. unlimited liability the owner has for the debts of the firm. O b. high cost of starting or ending the company. O c. possibility of disagreements between owners. O d. fact that any income earned by this type of business is taxed twice. Next page sic 7 To many businesspeople, one of the major attractions of a sole proprietorship is. Select one: O a. the protection of limited liability. O b. the chance to be their own boss. O c. an unlimited lifespan O d. the ability to obtain additional financial resources NO age pic 7 In a free-market economic system, the lack of government control and regulation means that businesses find it easy to take advantage of customers by offering poor quality products at high prices. Select one: O True O False e Next page c7 Either free-market or command economies have created sound economic conditions. Select one: O True O False Ne The benefits of protective tariffs are: Select one: O a. they help develop friendlier trade relations with loyal trading partners. Both parties are protected O b. they decrease the cost of the product to the consumer (end-user). O c. they increase the revenues of the government that has implemented them. O d. they protect domestic jobs by encouraging cost-sensitive consumers to purchase domestic products. A major advantage of S corporations is that they: Select one: O a. avoid the problem of double taxation associated with conventional corporations. O b. can have more stockholders than a C corporation. O c. require less paperwork to set up than a C corporation does.. O d. can operate in foreign nations as if they were domestic corporations. Nex age o 'Topic 7" 25 a country exports $250 of goods and services and imports $170 of goods and services, it has an unfavorable balance of trade of $80. of 1 Select one: O. True O False page Finish attempt