Lisa and John own a partnership that provides rental equipment for parties and special occasions. Which of the following is true about the way Lisa and John would handle company profits?
A) Automatically split the profits, with 50 for Lisa and 50 for John.
B) Do nothing because partnerships require that profits remain in the business.
C) Divide the profits according to each person's investment in the business.
D) Distribute the profits according to the terms of the partnership agreement.
E) Split the profits according to how many hours each person worked.
Question 2 - Heinz ketchup comes in a variety of different sizes, including a single-serve dip and squeeze size that allows consumers to peel back the lid to dip items in or tear off a small piece to squeeze out the ketchup. This type of packaging functions to:
A) attract buyer attention.
B) improve design or function.
C) protect the product.
D) better serve customer needs.
E) provide product information.
Question 3 - Stan has a lot of expertise in architecture but doesn't know much about management. He'd like to share ownership in a business with another person who could offer the management expertise to make the business successful. He would most likely form a:
A) sole proprietorship.
B) corporation.
C) partnership.
D) conglomerate.
E) joint venture.
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