LUOA Business and Trade review

Which of the following can discourage the creation of new businesses?

(NOT SURE) high tax rates?

Which of the following are advantages of sole proprietorships? (choose all that apply)

-Their owners get to keep all the profits for themselves. -Their owners have total control over their business. -They are generally easy and inexpensive to start.

Trade barriers are harmful to which of the following groups? (choose all that apply)

-foreign producers in the affected industries -domestic consumers

Which of the following are challenges for entrepreneurs? (choose all that apply)

-high financial commitment -high levels of stress -high time commitment

Which of the following are effects of the expansion of trade? (choose all that apply)

-increases the variety of products available for consumers to purchase -increases competition, which lowers prices and improves quality

Which of the following are disadvantages of franchises? (choose all that apply)

-owners have to pay an expensive franchise fee -owners have limited control over their business

Which of the following are incentives for entrepreneurs? (choose all that apply)

-profit -helping others

Which of the following are reasons that trade barriers are established? (choose all that apply)

-to apply diplomatic pressure to a foreign government -to protect domestic industries that would be hurt by free trade -to strengthen national defense

What happens when all nations specialize in the areas in which they have comparative advantages? (choose all that apply)

-total world production increases -the global standard of living increases (NOT SURE) -the worlds total opportunity cost increases

In the video about entrepreneurship, why was the owner of Clean & Mean able to craft her work schedule in a way that allowed her to go to the mall with her mom on Friday mornings?

Because of the level of independence offered by entrepreneurship.

If Country A can produce wheat at a lower cost than Country B, then Country A has a(n) ____________ advantage in wheat production.

absolute

Entrepreneurs develop new products and start new businesses by ________________.

bringing natural, human, and capital resources together

Which of the following is an example of a cooperative?

credit union

Foreign goods are goods that were made in other countries, and _________ goods are goods that were made in your own country

domestic

Domestic products sold to buyers in other nations are called _________

exports

A business with two or more owners is called a _____________.

partnership

A limit on the quantity of a product that's allowed into a nation is called a(n) _______.

quota

A business with one owner is called a ________________.

sole proprietorship

____________ occurs when a nation focuses its resources on producing goods that it expects to trade.

specialization

Which of the following is the most common trade barrier?

tariff