Business Semester Test

What is the simplest form of business ownership?

• Sole proprietorship

• Partnership

• Corporation

• Cooperative

A corporation is primarily owned by:

• Customers

• Stockholders

• Partners

• Managers

Which of the following is a disadvantage of a partnership?

• Limited liability

• Shared decision-making

• Unlimited liability

• Ease of start-up

What type of business structure combines the limited liability of a corporation with the tax benefits of a partnership?

• Sole proprietorship

• Corporation

• Limited liability company (LLC)

• Franchise

Which of the following businesses is owned and operated by members for their mutual benefit?

• Corporation

• Partnership

• Franchise

• Cooperative

Which of the following is NOT part of the marketing mix?

• Price

• Product

• Promotion

• Production

A company that markets a luxury car would likely emphasize which element of the marketing mix?

• Low pricing

• High product quality

• Limited promotion

• Minimal advertising

Market segmentation divides the market based on:

• The age of the product

• Shared characteristics of consumers

• The company’s internal resources

• Employee skills

Which of the following is an example of relationship marketing?

• Offering limited-time discounts

• Launching a new advertising campaign

• Sending personalized thank-you emails to customers

• Reducing production costs

The main purpose of advertising is to:

• Increase production

• Persuade consumers to buy a product

• Improve product design

• Track customer feedback