Study Guide and Quiz Answers

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4

Which of the following business ownership structures offers the best liability protection but higher taxes?

A
A nonprofit corporation
B
A C corporation
C
A partnership
D
A sole proprietorship
6

What does a wholesaling company do?

A
Sell products to individual consumers
B
Sell products to companies that plan to resell them
C
Manufacture products and sell them to retail companies
D
Transform land into capital
7

Eggs, toilet paper, and candy bars are examples of __________.

A
Specialty goods
B
Convenience goods
C
Shopping goods
D
Unsought goods
9

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.
10

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.

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