ISOM TEST 1 QUESTIONS & ANSWERS
Which countries were merged into one market by NAFTA? - Answer -Canada, the US,
and Mexico
All of the following are advantages of a sole proprietorship except - Answer -unlimited
liability
In a socialist system, citizens are dependent on ______ for many goods and services -
Answer -the government
An important advantage of a corporation is its* - Answer -limited liability
when there is only one business providing a product in a given market, there exists -
Answer -a monopoly
when businesses can promote different features of their products and consumers are
willing to pay more for products containing the features they desire, the competitive
environment is probably* - Answer -monopolistic competition
Ruji has realized that she does not like working for others. she wants to open a
business in which she will have maximum control - Answer -sole propriotorship
because many countries do not permit foreign companies to purchase and operate
facilities in their countries, a company wishing to do business in such a country may
share the business costs by forming a - Answer -joint venture
the organizational form that many consider to be a blend of the best characteristics of
corp, partnerships, and sole proprietorships is the - Answer -limited liability company
_____ relates to the number of goods and services that customers are willing to buy at
different prices at a specific time - Answer -demand
____ have both tangible and intangible characteristics - Answer -products
the legal documents that identify the basic agreements between partners are called -
Answer -articles of partnership
economic expansion occurs when - Answer -an economy is growing and people are
spending more money
a favorable balance of trade exists when a country - Answer -exports more than it
imports
Which countries were merged into one market by NAFTA? - Answer -Canada, the US,
and Mexico
All of the following are advantages of a sole proprietorship except - Answer -unlimited
liability
In a socialist system, citizens are dependent on ______ for many goods and services -
Answer -the government
An important advantage of a corporation is its* - Answer -limited liability
when there is only one business providing a product in a given market, there exists -
Answer -a monopoly
when businesses can promote different features of their products and consumers are
willing to pay more for products containing the features they desire, the competitive
environment is probably* - Answer -monopolistic competition
Ruji has realized that she does not like working for others. she wants to open a
business in which she will have maximum control - Answer -sole propriotorship
because many countries do not permit foreign companies to purchase and operate
facilities in their countries, a company wishing to do business in such a country may
share the business costs by forming a - Answer -joint venture
the organizational form that many consider to be a blend of the best characteristics of
corp, partnerships, and sole proprietorships is the - Answer -limited liability company
_____ relates to the number of goods and services that customers are willing to buy at
different prices at a specific time - Answer -demand
____ have both tangible and intangible characteristics - Answer -products
the legal documents that identify the basic agreements between partners are called -
Answer -articles of partnership
economic expansion occurs when - Answer -an economy is growing and people are
spending more money
a favorable balance of trade exists when a country - Answer -exports more than it
imports
