Karen Howard loves to cook and receives unqualified praise whenever she prepares a meal for someone. Encouraged by these compliments and eager to put her culinary talents to good use, Karen decides to open a small neighborhood restaurant. Because she plans to maintain complete ownership and control of the business, she will most likely organize it as a:
A) limited partnership.
B) corporation.
C) general partnership.
D) cooperative.
E) sole proprietorship.
Question 2 - Arm & Hammer launches a campaign to extend the life of its baking soda products through improved packaging and new uses in products such as toothpaste and cat litter. These new uses of products and other modifications are generally created during the _____ phase of the product life cycle.
A) growth
B) introduction
C) maturity
D) extension
E) decline
Question 3 - The simplest form of business owned and operated by one person is called a(n):
A) franchise.
B) partnership.
C) S corporation.
D) sole proprietorship.
E) syndicate.
Question 4 - The product life-cycle stage in which consumer awareness and acceptance of the product are low; there are few competitors; and there is a gradual rise in sales because of promotion is called:
A) extension.
B) introduction.
C) growth.
D) decline.
E) maturity.
Question 5 - Gabriella chose franchising as her method of entry for her jewelry and accessory business because:
A) she wanted to maintain a high level of control in the business and was willing to take significant risks to enter the overseas market.
B) she was not concerned about her level of control in the business but was concerned about her level of risk.
C) she wanted to maintain a moderate level of control but lacked funds to open a division overseas.
D) she was very concerned about her level of control in the company and wished to join a partnership to enter the overseas market.
E) she felt confident that her company would be extremely successful overseas and solicited investments to build a factory in China.
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