Nidal has an idea for a new technology company. He knows the technology industry is constantly changing and in order to be successful, his company will require a large amount of capital to keep up with the changes. Nidal is likely to choose:
A) a partnership because Nidal will need someone to help generate ideas for the business.
B) a corporation because the company will have perpetual life and Nidal's children can take over the business.
C) a corporation because it is easiest to exchange shares of ownership for investment capital.
D) a sole proprietorship because it will be easiest for Nidal to remain in control.
E) a partnership because it is easiest to exchange shares of ownership for investment capital.
Question 2 - When you place an order with Chicago Steak Company, the steaks are vacuum wrapped, flash frozen, and shipped in an insulated cooler with enough dry ice to keep them cold until arrival. Which function of packaging does this represent?
A) Attracting buyer attention
B) Providing product information
C) Better serving customer needs
D) Improving design or function
E) Protecting the product
Question 3 - Fifteen years ago, Saul started a small business in which he was the only owner. He is looking to change ownership structure because his business has grown exponentially and he would like to expand overseas. Saul knows his overseas expansion will be expensive and he will need investments from people outside the business to make that happen. Saul would likely consider switching to:
A) an acquisition.
B) an entrepreneurship.
C) a sole proprietorship.
D) a partnership.
E) a corporation.
Question 4 - Flip phones would likely be characterized as being in which stage of the product life cycle?
A) Decline
B) Maturity
C) Expansion
D) Growth
E) Introduction
Question 5 - Three construction contractors decide to form a real estate development firm where they will share ownership and decision making. They would like the ability to allow others to buy in to the business, but only if those people will be active participants who can add value to the existing ownership team. They should most likely choose a:
A) sole proprietorship.
B) syndicate.
C) partnership or LLC.
D) joint venture.
E) sole proprietorship or LLC.
Question 6 - A food manufacturer introduces a new yogurt blend in single-serving cups that do not need to be refrigerated, so parents can pack yogurt in their kids' lunch boxes or take a container of yogurt to work without having to worry about keeping it refrigerated. Which function of packaging does this best represent?
A) Protecting the product
B) Attracting buyer attention
C) Better serving customer needs
D) Providing product information
E) Providing instructions for use