The price of an item should be a. less than what the competition is charging. b. total costs plus a margin of profit. c. based on what purchasers are willing to pay. d. based exclusively on break-even analysis.

2. Lauren, a partner in Jales & Jales Bonding Company, manages its day-to-day operations. She is considered to be a _____ partner.

a. general

b. limited

c. directing

d. operating

3. Bottling machines and manufacturing robots used in factories are examples of special-purpose equipment. (T/F)

4. According to government surveys, about _____ of all U.S. business owners choose to run their businesses primarily out of their home. a. 25% b. 50% c. 10% d. 35%

5. One of the benefits of extending credit to buyers is that doing so provides better records of purchases on credit billing statements. (T/F)

6. ______ is the process of increasing the volume and quality of traffic to a particular website.

a. Prospecting b. Search engine optimization (SEO) c. Social networking d. Blogging