What is the primary disadvantage of a sole proprietorship that a corporation overcomes?
A) No business opportunities
B) Tax complications
C) Unlimited liability
D) Ease of start-up
E) Lack of secrecy
Question 2 - Consumers who strongly feel that the distribution channel should be made as short as possible assume that fewer intermediaries means:
A) more convenience for the consumer.
B) lower prices for consumers.
C) higher costs for manufacturers.
D) more product selection.
E) higher prices for consumers.
Question 3 - Tasha's T-Shirts Inc made 500,000 profit last year. That profit will be taxed at the company's tax rate. Tasha will then reinvest those after-tax profits back into the business to avoid paying an additional tax on dividends. This is called:
A) unlimited taxation.
B) sales taxation.
C) corporate taxation.
D) flat taxation.
E) pass-through taxation.
Question 4 - Which of the following statements is true about marketing intermediaries?
A) The functions they perform are unnecessary in the marketing channel.
B) Although intermediaries can be eliminated, the functions they provide cannot.
C) Eliminating a marketing intermediary will always decrease distribution costs.
D) Marketing intermediaries sell their products to end customers.
E) Most marketing channels have at least two marketing intermediaries involved in the distribution of goods.
Question 5 - Jill's coffee shop made 250,000 profit last year. Jill and her partner will report their share of profits on their individual tax return. This is called:
A) unlimited taxation.
B) double taxation.
C) corporate taxation.
D) flat taxation.
E) pass-through taxation.
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