QUESTION Which of the following is considered bad advice for people in a business partnership with a significant other? A) find emotional support outside the family B) expect disagreements C) make all decisions together D) set work and home boundaries E) don’t be critical or dismissive of your partner ANSWER Answer: C Explanation: C) […]
QUESTION A sporting goods store is owned by its user members. The store is run by managers hired by a board of directors that was elected by shareholder members. What kind of company is the store? A) a limited liability partnership B) a limited liability company C) a B corporation D) a cooperative E) a […]
QUESTION What is the oldest, simplest, and the most common form of business ownership? A) corporation B) cooperative C) partnership D) sole proprietorship E) franchise ANSWER Answer: D Explanation: D) Representing 72 percent of businesses, sole proprietorship is the most common type of business ownership.
QUESTION Melissa runs a small medical bills collections agency. She decides what to charge her customers, whom to hire, and how to grow the business. She allows her employees to bring their children to work on occasion and doesn’t have to share financial information with anyone. Which benefit of running a sole proprietorship is described […]
QUESTION When Selena started her all-natural homemade soaps business, she made and sold the soaps from her garage. Her father gave her startup money to pay for ingredients and packaging materials, which made him a silent partner. Selena has since paid him back in full. What kind of company is Selena’s now? A) a general […]
QUESTION After Skip retired from the fire department, he decided to open a sandwich shop near the beach. He paid his startup costs—licenses, building rental, refrigeration, ingredients, and employee’s initial pay—with a loan he took out against his house. When a customer sued Skip, claiming she got sick from spoiled roast beef, Skip lost not […]
QUESTION Manuel owns and operates a tow truck company by himself. His busiest times are usually holidays and long weekends, when lots of people are traveling and lots of cars are on the road. Working these times means Manuel is experiencing which drawback of being a sole proprietorship? A) having unlimited financial liability, which means […]
QUESTION Lawrence has a small house painting business with two employees. Lawrence’s father gave his son startup money and occasionally contributes to the business financially when Lawrence is having a cash flow problem but has nothing to do with the running of the business. Lawrence always pays his father back out of business profits. What […]
QUESTION Raul was a fitness fanatic. If he wasn’t out for a run or a bike ride, he was at the gym lifting weights and building muscle. He decided to open a fitness studio, thinking he would be a natural at running such a business. But Raul hadn’t counted on the responsibility of keeping records, […]
QUESTION Fran’s interior decorating business has grown since she opened it by herself three years ago. Now she has another decorator who shares in the managerial decision making and profits, as well as six decorators who share in the basic workload. Fran has restructured her company to reflect these changes and only these changes. What […]
