ISOM TEST 1 CORRECT QUESTIONS
& ANSWERS(RATED A+)
Which countries were merged into one market by NAFTA? - ANSWERCanada, the US,
and Mexico
All of the following are advantages of a sole proprietorship except - ANSWERunlimited
liability
In a socialist system, citizens are dependent on ______ for many goods and services -
ANSWERthe government
An important advantage of a corporation is its* - ANSWERlimited liability
when there is only one business providing a product in a given market, there exists -
ANSWERa 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* - ANSWERmonopolistic 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 - ANSWERsole 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 - ANSWERjoint venture
the organizational form that many consider to be a blend of the best characteristics of
corp, partnerships, and sole proprietorships is the - ANSWERlimited liability company
_____ relates to the number of goods and services that customers are willing to buy at
different prices at a specific time - ANSWERdemand
____ have both tangible and intangible characteristics - ANSWERproducts
when a firm is facing a hostile takeover attempt, it may issues a poison pill, which is -
ANSWERwhen the firm allows stockholders to buy up shares of stock at lower than
market value
economic contradiction occurs when - ANSWERspending DECLINES
& ANSWERS(RATED A+)
Which countries were merged into one market by NAFTA? - ANSWERCanada, the US,
and Mexico
All of the following are advantages of a sole proprietorship except - ANSWERunlimited
liability
In a socialist system, citizens are dependent on ______ for many goods and services -
ANSWERthe government
An important advantage of a corporation is its* - ANSWERlimited liability
when there is only one business providing a product in a given market, there exists -
ANSWERa 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* - ANSWERmonopolistic 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 - ANSWERsole 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 - ANSWERjoint venture
the organizational form that many consider to be a blend of the best characteristics of
corp, partnerships, and sole proprietorships is the - ANSWERlimited liability company
_____ relates to the number of goods and services that customers are willing to buy at
different prices at a specific time - ANSWERdemand
____ have both tangible and intangible characteristics - ANSWERproducts
when a firm is facing a hostile takeover attempt, it may issues a poison pill, which is -
ANSWERwhen the firm allows stockholders to buy up shares of stock at lower than
market value
economic contradiction occurs when - ANSWERspending DECLINES
