Question

Question 7 Quarrels among business associates have become common. The associates quarrel over what products the firm should sell, division of authority, selection of personnel, whether to bring family members into the business, whether to expand, and who is contributing most to the firm s success. Such feuding, which damages business relationships, occurs most frequently in what form of business a. Partnerships b. S-corporations c. Corporations d. Sole proprietorships e. Coorperatives 1.5 points

Question 8 Laura wants to start a business, but she is unsure of the legal form best for her. Short of cash, she has decided to take the form that is the least expensive and most flexible in terms of decision-making and implementation. Which would you recommend? a. Sole proprietorship b. Cooperative c. Joint Venture d. Partnership e. Corporation 1.5 points

Question 9 What is the main advantage of small business that helps retain effective employees who could earn more at a larger firm? a. Limited ability to raise capital b. Better pay and employee benefits c. Personal relationships with employees d. Simplified record keeping e. Ability to adapt to change 1.5 points Question 10 You have decided to open a pet store and have engaged in a contract with Dog & Cat Centers, Inc. You and the company have drawn up an agreement that allows you to use the company’s name and its proven method of doing business, to receive training, and to use its advertising materials. In this agreement, Dog & Cat is the _______ and you are the _________. a. entrepreneur; corporation b. franchisor; franchisee c. employee; employer d. entrepreneur; local chain e. corporation; manager 1.5 points Question 11 An oligopoly is a market situation in which there is one producer and a few large buyers. True False

Answer 1

7.

Correct Answer - a. Partnerships

Explanation - Partnership is a form of business in which the decision is made by the major partners in the firm. Hence, it is difficult in a partnership business to the decisions given in the question. A decision might be of personal interest for one but it might be a matter of concern for others and hence, quarrel occurs.

8.

Correct Answer - a. Sole proprietorships

Explanation - In a sole proprietorship business, it is easier to take the decisions as you are the sole owner of the business. Decision making and Implementation become flexible in this form of business. Hence, it is the correct option.

9.

Correct Answer - c. Personal relationships with employees

Explanation - A small business has usually a small number of workforce. Hence, the communication and understanding among the team is more effective than that is a large organization where the employee might be paid more but will not be in a good relationship with other employees. Hence, Good relationship is the factor which helps in employee retention in small businesses.

10.

Correct Answer - b. Franchisor and Franchisee

Explanation - Franchisor and Franchisee is a form of business in which we use the brand name of any established business while meeting the same standards as set up by the brand and providing services to te customers by getting an agreement with the franchisor. Hence, b is the correct option.

11.

Correct Answer - False

Explanation -

Oligopoly is defined as the market situation of limited competition in which only a few sellers or producers are present in the market. Hence, the statement is false.