Manuel owns a mobile pet-grooming business. Last year, as he was grooming a poodle named Fifi, Manuel accidentally dropped the clippers, causing a gash on the poodle's back. Fifi's owner then sued Manuel for the veterinarian bills. The court determined that Manuel owed Fifi's owners 2000. Manuel's pet-grooming business:
A) is likely a sole proprietorship, which means that Manuel has unlimited liability.
B) is likely an LLC with unlimited liability.
C) is likely a corporation, which means that Manuel has unlimited liability.
D) is likely a partnership, which means that Manuel as limited liability and only paid a portion of the veterinarian bills.
E) is likely a corporation, which means that Manuel has limited liability.
Question 2 - Self-service, general-merchandise outlets that sell goods at lower than usual prices are called _____ stores.
A) discount
B) department
C) convenience
D) specialty
E) shopping
Question 3 - Nicole is 50 owner in a manufacturing company that runs as an LLC. She invested 25,000 when the business started and has received no money from the business since then. The company just lost a 1,000,000 patent infringement lawsuit and will have to shut down. What is Nicole's personal loss on this business?
A) 0
B) 25,000
C) 500,000
D) 1,000,000
E) 1,025,000
Question 4 - Whirlpool Appliances would most likely use _____ distribution to sell washers, dryers, refrigerators, and other major appliances to consumers.
A) intensive
B) selective
C) patterned
D) exclusive
E) comprehensive
Question 5 - Carissa is 25 owner in a corporation that builds custom machinery. Last year the corporation suffered due to intense competition. After losing 1,000,000 last year, the business is shutting its doors. The business has unpaid debts of 9,000,000. What is Carissa's personal liability?
A) 0
B) 250,000
C) 1,000,000
D) 9,000,000
E) 10,000,000
Question 6 - The main differentiation between a category killer like Home Depot and a small, family-owned hardware store like Hader Hardware is:
A) number of product categories.
B) pricing.
C) distribution intensity.
D) size and selection.
E) advertising.
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