A large, self-service store that sells primarily food and household products is called a:
A) specialty store.
B) discount store.
C) department store.
D) supermarket.
E) convenience store.
Question 2 - You run a fitness studio that trains individual clients and small groups. Because you are the only trainer, you run the business as a sole proprietorship. A client was injured and sues you for 1,000,000. You have no liability insurance on the business. What is your personal liability if you lose the lawsuit?
A) 0
B) 50,000, because that is how much money you have in the business account
C) 500,000, because that is how much your landlord paid for the building you are in
D) 1,000,000
E) None of the choices are correct
Question 3 - Kroger is a retailer that sells a wide variety of fresh, frozen and canned grocery products, as well as pet food, kitchen and bath supplies, and some personal care products, like toothpaste, shampoo, and cosmetics. Based on this information, Kroger would be categorized as a(n):
A) department store.
B) category killer.
C) supermarket.
D) agent.
E) convenience store.
Question 4 - You are 50 partner in a general partnership. The business has outstanding debts of 250,000 and is closing due to the death of your only partner. What is your personal liability?
A) 0
B) 125,000
C) 250,000
D) 325,000
E) 500,000
Question 5 - The use of all available outlets for a product to obtain the widest market exposure is called _____ distribution.
A) exclusive
B) intentional
C) selective
D) patterned
E) intensive
Question 6 - Lucia and her brother, Diego, took over the family-owned pet store when her father retired. Sales have been sluggish due to a larger pet store opening in the area. Lucia is panicked because the pet store owes various creditors 25,000. If the business closes, she will have to sell her car to pay back the debt. Diego, tells her, Don't worry There is no way the creditors can come after your personal property. How can Diego be so sure?
A) Diego knows that his father formed the business as a sole proprietorship, which means they have limited liability and will not need to pay back business debts.
B) Diego knows that companies formed as corporations only have to pay back business debts over 30,000.
C) Diego knows that the company is a partnership, which means they have limited liability and will not need to pay back business debts.
D) Diego knows that the company is owned as an LLC, which means that he and Lucia have limited liability and will not need to pay back business debts.
E) Diego knows that the company is owned as an S corporation, which means that they have unlimited liability and will not need to pay back business debts.
Question 7 - Lamps Plus is a retailer of lamps, chandeliers, ceiling fans, and outdoor lighting, with over 30 stores nationwide. Based on this description, Lamps Plus would likely be categorized as a:
A) supermarket
B) department store.
C) convenience store.
D) specialty store.
E) warehouse club.
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