Exam 1 Sol

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Exam 1 1. Country A is extremely efficient in the mining of tin. However, its climate and terrain makes it difficult to produce corn. According to the theory of comparative advantage, Country A should: concentrate its production on tin and buy corn from an efficient producer. 2. Climate and terrain in several South American countries are conducive to growing coffee efficiently. While other countries can grow coffee, they are not as efficient and effective at coffee growing because of short seasons and climate concerns. This fact would lead you to believe that South American countries have a (n) __________ advantage in the production of coffee. comparative 3. The only deposits of a rare and sought after mineral known as Yuksporite are …show more content…

If SmallWorld go bankrupt, Dane and the other stockholders will: Lose their investment but nothing else. 25. Which of the following is an advantage of franchises? Management and marketing assistance 26. In a sole proprietorship, the profits earned by the business are: The property of the owner, except for taxes owed to the government. 27. With respect to taxes, the sole proprietorship: Pays taxes on the profits of the business, at the owner's personal tax rate. 28. A significant disadvantage of owning a sole proprietorship is the: Overwhelming time commitment often required of the owner. 29. Unlimited liability means: When you own your own business you are responsible for all the business debts. 30. Nick wants to start his own business. Nick should consider a sole proprietorship if he: Wants to be his own boss and can accept unlimited liability. 31. Javier is the sole proprietor of a golf shop. Because he is a sole proprietor, any profit Javier's business earns is: Taxed only as Javier's personal income. 32. In a partnership, a(n) __________ partner (owner) actively manages the company and has unlimited liability for claims against the firm. general 33. A partner (owner) who invests money in a business, does not take an active role in managing the operation, and is only subject to losing the funds he/she invested. Limited partner 34. The limited liability provided to limited partners means that they are not responsible for the debts of the business

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