Define the three common business forms.
What will be an ideal response?
Sole proprietorship-The sole proprietorship is a business form in which a single person is the sole owner
and is personally responsible for all the profits and losses of the business. Partnership-Partnerships are
similar to sole proprietorships, except that this legal structure allows for more than one owner. Each
partner is personally responsible for all the profits and losses of the business. Corporation-The
corporation is the most sophisticated form of business entity and the most common among large
companies. The corporation (also called, organization, enterprise or business) is an artificially created
legal entity that exists separate and apart from those individuals who created it and carry on its operations.
In a corporation, the business entity is separate from the business owners.
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Which major communication tool makes use of displays, discounts, coupons, and samples?
A) sales promotion B) sponsorship C) publicity D) public relations E) advertising
Which statement regarding the duties of leaders and managers is BEST?
A) Leaders embrace the status quo while managers support change. B) A manager's title is bestowed by the organization. C) Leaders aim for efficiency. D) Managers aim for effectiveness.
The maximum capital loss that can be applied to ordinary income for income tax purposes in any one year is $3000
Indicate whether the statement is true or false.
One reason that writing options can be a viable and profitable investment strategy is that
A) the option writer collects the quarterly dividends. B) most options expire unexercised. C) an option writer determines when the option is exercised. D) an option writer can exercise the option to avoid a potential loss.