Question

6. The government has an interest in promoting competition between businesses because competition results in

A. lower prices and lower-quality products
B. higher prices and higher-quality products C. lower prices and higher quality of products. D. higher prices and lower-quality products
7. Which of the following is an advantage of investing in a mutual fund? A. Investments are made in only one company
B. Professional management
C. Guaranteed profit
D. No risk
8. If the unemployment rate is rising, what part of the business cycle is the economy most likely experiencing?
A. Peak
B. Recession C. Spiral
D. Expansion
9. In what way might a partnership be better than a sole proprietorship? A. Liability is limited.
B. Setup costs are higher.
C. Profits are split.
D. More capital is available.
10. Which of the following is a disadvantage of the sole proprietorship form of ownership? A. Split responsibility
B. Limited liability
C. Control over the business
D. Unlimited liability

Answer 1

6.)
      C.) Lower prices and higher quality of products
            -With businesses competing, they will always want you to pick their                      product over the competitors, and they need to give you a reason for it

7.)
      B.) Professional Management
           -In a mutual fund, investors only give their money and they do not                     have to manage it; it is done for them

8.)
      B.) Recession
           -A recession occurs when an economy experiences an economic                    decline. One of the factors includes unemployment

9.)
       A.) Limited liability
            -Because there is not just one owner, liability may be split

10.)
       D.) Unlimited liability
             -With only one owner of a business, they are responsible for                            everything that goes on in the company. If something were to go                      wrong, they alone would be responsible

Hope this helps!