FSOT : Management Questions! Trivia Test! Quiz
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What is economic expansion?
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Slowdown of the economy characterized by decline in spending, cutbacks in production, and layoffs.
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Economic situation where the population wants to find work but cannot.
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A situation that occurs when a nation spends more than it generates in taxes.
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An economic situation in which people are spending, thus stimulating production of goods and services, and employment.
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FSOT stands for Functional System Outdoor Training. According to this quiz, you will need to understand which of the two strategies can effectively motivate employees. What program allows employees to choose their starting and ending times, as long as they are at work for a specified amount of time, the equal pay act, and what is important when evaluating an See moreemployee’s performance. Good luck with this quiz.
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- 2.
With affirmative action programs, legally mandated plans try to increase job opportunities for
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Professionals.
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White Caucasian males.
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Highly qualified individuals.
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Women and minorities.
Correct Answer
A. Women and minorities.Explanation
Affirmative action programs are legally mandated plans that try to increase job opportunities for minority groups by analyzing the current pool of workers, identifying areas where women and minorities are underrepresented, and establishing specific hiring and promotion goals, with target dates, for addressing the discrepancy.Rate this question:
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- 3.
Which of the following is not in top management?
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Customer Service Officer (CSO)
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Chief Executive Officer (CEO)
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Chief Financial Officer (CFO)
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Chier Operations Officer (COO)
Correct Answer
A. Customer Service Officer (CSO)Explanation
Customer Service Officer is a front-line staffer.Rate this question:
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- 4.
The Equal Pay Act mandates that men and women who do equal work must receive the same wage. Wage differences are acceptable only if they are attributed to seniority or
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National origin.
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Religion.
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Performance.
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Location.
Correct Answer
A. Performance.Explanation
Performance varies across individuals and as such different wages should be applied. Although people in different locations get different gross wages, that approach is still based on the same base wage with different location allowance. National origin and religion are not relevant.Rate this question:
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- 5.
Which of these is not a factor in evaluating employee performance?
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Productivity.
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Leadership.
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Adaptability.
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Social skills.
Correct Answer
A. Social skills.Explanation
Productivity, leadership, and adaptability are very important in evaluating employee performance. Productivity is the rate at which work is regularly produced and determines the effectiveness of the firm. A firm needs good leadership to grow. Employees that are potential good leaders should be groomed to top management roles. Adaptability is the ability to be comfortable with change. The only thing that is constant in a firm is usually change. Thus employees need to be able to adapt relatively quickly to changes.Rate this question:
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- 6.
Which of these is not a role of management?
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Planning
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Organizing
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Staffing
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Customer service
Correct Answer
A. Customer serviceExplanation
Managers plan, organize, staff, and direct. They have to play the strategic role and have to be free from day-to-day operations. On the other hand, customer service is an operational part of the organization and is for front-line staff.Rate this question:
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- 7.
This is a program that allows employees to choose their starting and ending times, provided that they are at work during the specified core period. What is it?
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Double time.
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Flextime.
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Part time.
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Job sharing.
Correct Answer
A. Flextime.Explanation
Flextime is the program adopted by many U.S. companies as they recognize that making allowances for employees' schedule increases employee morale and productivity. Double time and part time are not correct. Job sharing is not correct, but is a useful management tool that occurs when two people share a job. This allows the employee to keep a job without losing income and yet being able to spend time on personal priorities.Rate this question:
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- 8.
Which of the following is not a consumer product?
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Specialty products.
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Raw materials.
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Shopping products.
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Convenience products.
Correct Answer
A. Raw materials.Explanation
Raw materials are natural products taken from the earth, oceans, and recycled solid waste. It is usually the starting phase of any products or business products. Convenience products are frequently purchased products, while shopping products are products in which consumers compare and contrast the benefits and costs. Specialty products are products such as fusion food or designer clothing.Rate this question:
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- 9.
Which of these is not a financial statement?
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Income statement.
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Balance sheet.
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Inventory sheet.
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Cash flow statement.
Correct Answer
A. Inventory sheet.Explanation
An income statement is a financial report that shows an organization's profitability over a period of time, while a balance sheet is a snapshot of an organization's financial strength. A cash flow statement reflects the current assets and liquidity of the firm. An inventory sheet keeps track of inventory, which is not part of financial accounting.Rate this question:
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- 10.
What is functional departmentalization?
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The arrangement of jobs around the needs of various types of customers, such as commercial banking versus consumer banking services.
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The grouping of jobs according to geographic location such as state, region, country, or continent.
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The organization of jobs in relation to the products of the firm.
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The grouping of jobs that perform similar functional activities, such as finance, manufacturing, marketing, and human resources.
Correct Answer
A. The grouping of jobs that perform similar functional activities, such as finance, manufacturing, marketing, and human resources.Explanation
Answer A is customer departmentalization, answer B is geographical, and C is production departmentalization.Rate this question:
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- 11.
What is the difference between a brand and a trademark?
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There is no difference.
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Brands are used for consumer goods, while trademarks are for advertising.
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A trademark is a brand that is registered and legally protected.
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A brand is used for a product or service, while a trademark is used for generic goods.
Correct Answer
A. A trademark is a brand that is registered and legally protected.Explanation
Branding is the process of naming and identifying products. A brand is a name, term, symbol, design, or combination that identifies a product and distinguishes it from other products. A trademark needs to be registered with the U.S. patent and trademark office. It is legally protected.Rate this question:
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- 12.
Why do we need to have teams in organizations?
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It allows for the organization to be more cohesive and operate as one for the customer.
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It allows for pooling of skills and creative solutions from a collection of ideas.
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It provides internal rewards in the form of enhanced sense of accomplishment for employees.
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All of the above.
Correct Answer
A. All of the above.Explanation
Although teams bring with them benefits, they sometimes also create problems. Sometimes, personal conflicts can occur and hamper group productivity. Different groups can also refuse to share information and resources. But generally, the benefits outweigh the problems.Rate this question:
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- 13.
The development and administration of the activities involved in transforming resources into goods and services is known as
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Operations management
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Marketing management
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Financial management
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Human resources management
Correct Answer
A. Operations managementExplanation
Operations management refers to the process of planning, organizing, and controlling the activities involved in transforming resources (such as raw materials, labor, and technology) into goods and services. It focuses on ensuring efficient and effective utilization of resources to meet customer demands and achieve organizational goals. This includes activities such as production planning, inventory management, quality control, and supply chain management. Therefore, operations management is the correct answer as it specifically relates to the development and administration of activities involved in transforming resources into goods and services.Rate this question:
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- 14.
Why is morale an important component of human relations, especially for employees?
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High morale contributes to high levels of productivity and high returns to stakeholders.
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High morale enables top management to have higher salary.
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High morale means the firm will have higher brand loyalty.
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High morale helps the firm obtain stock listing.
Correct Answer
A. High morale contributes to high levels of productivity and high returns to stakeholders.Explanation
Motivation affects an employee's attitude toward his or her job, employer, and colleagues. Low morale can contribute to high levels of dissatisfaction, absenteeism, and turnover.Rate this question:
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- 15.
The negotiation process through which management and unions reach an agreement about compensation, working hours, and working conditions is
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Union labor contract.
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Union arbitration.
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Union Mediation.
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Collective bargaining.
Correct Answer
A. Collective bargaining.Explanation
The objective of the collective bargaining is to reach a labor contract. In collective bargaining each side tries to reach an agreement that meets its demands. Sometimes, if this is not resolved amicably, it will lead to strikes and picketing.Rate this question:
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- 16.
Which of these cannot be used as a basis for segmenting consumers?
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Demographic information, which includes gender and income.
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Geographic information, which includes terrains and population density.
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Psychological information, which includes personality and motives.
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Medical condition information, which includes health and cancer records.
Correct Answer
A. Medical condition information, which includes health and cancer records.Explanation
Medical conditions change with time and location; although it is technically possible to segment based on medical condition, it will be trivial and a secondary finding compared to the first three answers.Rate this question:
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- 17.
When a product is marked as ISO 9000, what does it mean?
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It has international Sales Order of 9000 volume.
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It has been manufactured by an ISO 9000 company, a company known for its computer servers.
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It has met a series of quality standards designed by an international organization.
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It uses replacement cartridges of mode ISO 9000.
Correct Answer
A. It has met a series of quality standards designed by an international organization.Explanation
ISO stands for International Organization for Standardization, which determines a series of quality standards internationally to ensure consistent product quality under many conditions.Rate this question:
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- 18.
Which of these are ways to compensate the workforce?
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Salary, commission, profit sharing, less work
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Salary, commission, benefits, less work
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Salary, commission, profit sharing, more responsibilities
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Salary, commission, profit sharing, benefits
Correct Answer
A. Salary, commission, profit sharing, benefitsExplanation
The correct answer is salary, commission, profit sharing, benefits. These are all common methods used by employers to compensate their workforce. Salary is a fixed amount paid to employees on a regular basis, while commission is a percentage of sales or revenue earned. Profit sharing involves distributing a portion of the company's profits among employees. Benefits can include health insurance, retirement plans, and other perks provided by the employer.Rate this question:
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- 19.
Organizations operate in groups. Which of these are forms of groups in a firm?
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Committees, task force, self-directed work teams
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Committees, task force, car-pool groups
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Committees, product-development teams, car-pool groups
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Committees, quality-assurance teams, car-pool groups
Correct Answer
A. Committees, task force, self-directed work teamsExplanation
In organizations, different forms of groups exist to facilitate collaboration and achieve common goals. Committees are formal groups that are formed to address specific issues or make decisions. Task forces are temporary groups assembled to work on a specific project or problem. Self-directed work teams are groups of employees who are empowered to make decisions and manage their own work processes. These groups play important roles in promoting teamwork, sharing expertise, and enhancing overall organizational performance.Rate this question:
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- 20.
The U.S. workforce is becoming increasingly diverse. What are some primary characteristics of diversity?
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Age, gender, ethnicity, race
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Age, education, ethnicity, race
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Age, gender, work background, race
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Age, gender, ethnicity, marital status
Correct Answer
A. Age, gender, ethnicity, raceExplanation
The primary characteristics of diversity in the U.S. workforce include age, gender, ethnicity, and race. These factors represent different aspects of an individual's identity and contribute to the overall diversity within a workplace. Age diversity refers to the range of ages present in the workforce, while gender diversity encompasses the representation of both males and females. Ethnicity and race diversity highlight the variety of cultural backgrounds and racial identities within the workforce. These characteristics are important to consider in order to promote inclusivity and create a diverse and equitable working environment.Rate this question:
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- 21.
In marketing research, what is the difference between primary and secondary data?
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The former is used by marketing managers, while the later is used by consumers.
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The former is collected directly from consumers, while the latter is aggregated or compiled information.
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The former is collected directly from consumers, while the latter is seldom used by marketing managers.
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The former is used by marketing managers, while the latter is aggregated or compiled data.
Correct Answer
A. The former is collected directly from consumers, while the latter is aggregated or compiled information.Explanation
Primary data is marketing information that is observed, recorded, or collected directly from respondents, while secondary data is market information that is compiled inside or outside an organization for some purpose other than changing the current situation.Rate this question:
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- 22.
What is just-in-time inventory management?
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A model that identifies the optimum number of items to order to minimize the costs of managing (ordering, storing, and using) them.
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A technique using smaller quantities of materials that arrive precisely for use in the transformation process and, therefore, require less storage space and other inventory management expense.
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A planning system that schedules the precise quantity of materials needed to make the product.
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The sequence of operations through which the product must pass.
Correct Answer
A. A technique using smaller quantities of materials that arrive precisely for use in the transformation process and, therefore, require less storage space and other inventory management expense.Explanation
JIT inventory management is a popular technique that eliminates waste by using smaller quantities of materials that arrive just in time for use in the transformation process and, therefore, requires less storage space and other inventory management expenses.Rate this question:
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- 23.
What is the most effective method for a firm to improve morale for its employees?
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Increasing salary.
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Having programs that cater to their emotional, psychological, and domestic needs.
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Having corporate parties all the time.
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Having top management present company directions and strategy.
Correct Answer
A. Having programs that cater to their emotional, psychological, and domestic needs.Explanation
Employees all have emotional, psychological, and domestic problems. Having health plans, child-care facilities and counseling services are just some examples. Increasing salary is a short-term incentive; employees will quickly adjust to the new salary and morale will drop back down again. The other two choices have smaller effects but not as great as the programs cited in answer B.Rate this question:
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- 24.
For most salespeople, personal selling is a six-step process. Which is the correct sequence?
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Prospecting, presenting, approaching, handling objections, closing, following up.
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Prospecting, approaching, presenting, closing, handling objections, following up.
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Prospecting, approaching, handling objections, presenting, closing, following up.
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Prospecting, approaching, presenting, handling objections, closing, following up.
Correct Answer
A. Prospecting, approaching, presenting, handling objections, closing, following up.Explanation
The correct sequence for the six-step process in personal selling is prospecting, approaching, presenting, handling objections, closing, and following up. Prospecting involves identifying potential customers, approaching is the initial contact with the customer, presenting is the stage where the salesperson presents their product or service, handling objections is addressing any concerns or hesitations the customer may have, closing is the stage where the salesperson asks for the sale, and following up is the final step to ensure customer satisfaction and build long-term relationships.Rate this question:
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- 25.
SWOT analysis is often used to analyze the business situation of a firm. What does SWOT stand for?
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Situation work operation test
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Strength weaknesses operation test
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Strength weaknesses opportunity threats
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Situation work opportunity threat
Correct Answer
A. Strength weaknesses opportunity threatsExplanation
SWOT analysis has proven to be the most widely used and enduring analytical technique in strategic management. It allows the firm to be aware of its internal environment (strength and weaknesses) and its external environment (opportunity and threats).Rate this question:
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- 26.
In every company, there are financial managers. What is the role of a financial manager?
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Develop and administer activities involved in transforming resources into goods, services, and ideas ready for the market place.
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Focus on obtaining funds for the successful operation of an organization and using those funds to further organizational goals.
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Handle the staffing function and deal with employees in a formalized manner.
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Take responsibility for planning, pricing, and promoting products and making them available to customers.
Correct Answer
A. Focus on obtaining funds for the successful operation of an organization and using those funds to further organizational goals.Explanation
Financial managers work with funds that make the company operational and profitable.Rate this question:
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- 27.
Understanding customer thinking and needs is very important. When a marketing manager understands that the customers have certain needs to be fulfilled, products and services can be designed to fulfill those wants. What is the highest level of Maslow's hierarchy of needs?
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Esteem needs
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Social needs
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Self actualization needs
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Physiological needs
Correct Answer
A. Self actualization needsExplanation
Maslow's hierarchy of needs is a theory in psychology that categorizes human needs into different levels. The highest level in this hierarchy is self-actualization needs. Self-actualization refers to the desire for personal growth, self-fulfillment, and reaching one's full potential. It is the need to become the best version of oneself and to pursue meaningful goals and aspirations. This level of need is only reached once the lower levels, such as physiological needs, safety needs, social needs, and esteem needs, have been adequately fulfilled.Rate this question:
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- 28.
Which of these strategies cannot be used to motivate the employee?
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Job rotation.
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Job enlargement.
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Job enrichment.
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Job reduction.
Correct Answer
A. Job reduction.Explanation
Job rotation is the movement of employees from one job to another in an effort to relieve the boredom often associated with job specialization. Job enlargement is the addition of more tasks to a job instead of treating each task as separate. Job enrichment is the incorporation of motivational factors, such as opportunity for achievement, recognition, responsibility, and advancement. Job reduction, on the other hand, implies that the employee is not able to take up more responsibility and is, therefore, bad.Rate this question:
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- 29.
Which of these is not a profitability ratio?
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Profit margin.
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Return on assets.
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Return on equity.
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Receivables turnover.
Correct Answer
A. Receivables turnover.Explanation
Receivables turnover is an asset utilization ratio. The first three answers are all profitability ratio -- ratios that measure the amount of operating income or net income an organization is able to generate relative to its assets, owners' equity, and sales.Rate this question:
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- 30.
Which is the most important asset for top management?
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Analytical skills
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Leadership
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Human relations skills
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Technical expertise.
Correct Answer
A. LeadershipExplanation
Leadership is the most important asset for top management because it involves the ability to guide and inspire a team towards achieving organizational goals. Effective leadership ensures that the team is motivated, focused, and working towards a common vision. It involves making tough decisions, taking risks, and being accountable for the outcomes. Leadership also encompasses the ability to communicate effectively, delegate tasks, and manage conflicts. Without strong leadership, even the most skilled individuals may struggle to work together cohesively and achieve desired results.Rate this question:
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- 31.
In the event that a collective bargaining process fails to go through, what can management do?
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Strike.
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Boycott.
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Lock out.
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Picket.
Correct Answer
A. Lock out.Explanation
A lockout is the management's version of a strike, wherein a work site is closed so that employees cannot go to work. A strike is a walkout by employees, one of the most effective weapons employees have for collective bargaining. A boycott is an attempt to keep people from buying the products of the company, while picketing is a public protest against management practices that involves union members marching and carrying anti-management signs at the employer's plant.Rate this question:
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- 32.
Which of these reflect the three important functions of money?
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Medium of exchange, measure of value, store of value.
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Medium of exchange, measure of product, store of value.
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Medium of exchange, measure of value, store of deposits.
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Medium of gold, measure of value, store of value.
Correct Answer
A. Medium of exchange, measure of value, store of value.Explanation
Money, and before it, bartering, has always been used as a medium of exchange. It is also a measure of value because more of it means one can obtain better goods and services. It also acts as a common denomination in which people can compare the value of the products or services. It also allows people to keep some of their wealth and use it when needed in the future.Rate this question:
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- 33.
Which of these is not a characteristic of a board of directors?
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It is the board's responsibility to ensure that the firm's objectives are achieved on schedule.
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Board members are legally liable for the mismanagement of the firm.
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A board's duty involves hiring the CEO and president.
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They are all employees of the firm.
Correct Answer
A. They are all employees of the firm.Explanation
The board of directors is a group of individuals elected by the stockholders to oversee the general operations of the corporation and who set the corporation's long range objectives. Directors can be employees of the company or people unaffiliated with the company. Inside directors are usually the officers responsible for running the company. Outside directors are often top executives from other companies, lawyers, bankers, or professors.Rate this question:
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- 34.
In product management, in which stage of the product life cycle is there a negative profit?
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Introduction.
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Growth.
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Maturity.
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Decline.
Correct Answer
A. Introduction.Explanation
During the introduction phase, the sales volume is low and the cost of product development is high.Rate this question:
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- 35.
In finance, what are bonds?
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Loans backed by collateral that the bank can claim if the borrowers do not repay them.
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Loans backed only by the borrower's good reputation and previous credit rating.
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An arrangement by which a bank agrees to lend a specified amount of money to an organization upon request.
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Debt instruments that larger companies sell to raise long-term funds.
Correct Answer
A. Debt instruments that larger companies sell to raise long-term funds.Explanation
For bonds, the buyer loan the issuer of the bond cash in exchange for regular interest payments until the loan is repaid on or before the specified maturity date. A bond is like an IOU.Rate this question:
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- 36.
In marketing management, which of these is not part of the marketing mix?
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Consumer.
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Place.
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Price.
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Product.
Correct Answer
A. Consumer.Explanation
The marketing mix comprises price, product, promotion, and place. The consumer is never part of the marketing mix. A marketing firm needs to target the consumer and then apply the appropriate marketing mix to that targeted consumer group.Rate this question:
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- 37.
What is the bottom line for micro marketing?
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Sales.
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Expenses.
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Profit.
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Pricing.
Correct Answer
A. Profit.Explanation
The bottom line of micro marketing is profit. Profit is the difference between gross sales and expenses. For macro marketing and nonprofit marketing the bottom lines will be different. For macro marketing, the society must benefit as a whole, while for nonprofit marketing, the subjects or goals of the agency has to be fulfilled.Rate this question:
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- 38.
Which of these is an example of marketing direct channel?
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IBM selling PCs at a retail store in a mall
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IBM selling PCs online on its Web site.
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IBM selling PCs at Wal-Mart.
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IBM selling PCs at an IBM authorized retail outlet.
Correct Answer
A. IBM selling PCs online on its Web site.Explanation
Direct channel occurs when there is no middleman.Rate this question:
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- 39.
For consumer buying behavior, which of these is not a psychological variable affecting it?
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Imagination.
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Perception.
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Attitude.
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Personality.
Correct Answer
A. Imagination.Explanation
Imagination is the irrelevant answer. Perception is the process by which a person selects, organizes, and interprets information received from his or her senses. Attitude is both knowledge and positive or negative feelings about something. Personality is the organization of an individual's distinguishing character traits, attitudes, or habits. These three psychological factors affect a consumer's buying behavior, so firms need to be aware of them.Rate this question:
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- 40.
The transformation process of operations management involves
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Manufacturing, production, outputs.
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Restructuring, production, inputs.
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Inputs, conversion, outputs.
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Inputs, manufacturing, recycling.
Correct Answer
A. Inputs, conversion, outputs.Explanation
At the heart of operations management is the transformation process through which inputs are converted into outputs.Rate this question:
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- 41.
When a new cellular phone company enters a new market, it needs to acquire market share rapidly. What kind of pricing strategy should it adopt?
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Penetrating pricing
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Price skimming
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Psychological pricing
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Discounts
Correct Answer
A. Penetrating pricingExplanation
Penetration pricing is a low price designed to help a product enter the market and gain market share rapidly.Rate this question:
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- 42.
Why do we need to segment the market before applying the marketing mix?
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Because the market is too defragmented, and we need to consolidate.
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Because consumers are very heterogeneous, and we need to form similar groups for targeting.
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Because it is easier to staff manpower.
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Because the marketing mix can be applied only to segments and not masses.
Correct Answer
A. Because consumers are very heterogeneous, and we need to form similar groups for targeting.Explanation
Consumers are very heterogeneous. By segmenting, firms are able to better target the specific groups and then apply a concentration marketing mix effort on the segment. This way, the consumers have a better product or service that they need and will be more satisfied. Marketing mix for mass marketing is also possible; thus, D is not an answer.Rate this question:
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- 43.
Reengineering is important to strategy implementation. It breaks away from the old rules and procedures. Which of these is not a principle for reengineering?
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Organize around outcomes, not tasks.
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Have those who use the output of the process perform the process.
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Treat geographically dispersed resources as though they were centralized.
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Adopt status quo for some areas.
Correct Answer
A. Adopt status quo for some areas.Explanation
Reengineering is an important aspect of strategy implementation because it involves breaking away from old rules and procedures to create more efficient and effective processes. The principles of reengineering include organizing around outcomes rather than tasks, having those who use the output of the process perform the process, and treating geographically dispersed resources as though they were centralized. However, adopting the status quo for some areas goes against the idea of reengineering, as it implies maintaining existing practices instead of seeking improvements and innovation.Rate this question:
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- 44.
What is the difference between a product line depth and product line width?
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There is no difference.
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Product line depth refers to the different types of products the firm carry, while product line width refers to the different modifications of a product.
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Product line width refers to the different types of product the firm carry, while product line depth refers to the different modifications of a product.
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The product line depth and width refer to the same product or similar product.
Correct Answer
A. Product line width refers to the different types of product the firm carry, while product line depth refers to the different modifications of a product.Explanation
A product line is a group of closely related products that are treated as a unit because of similar marketing strategy, production, or end-use considerations. A product mix refers to all the products offered by an organization. Depth refers to the many modifications of the same product.Rate this question:
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- 45.
Which of the two strategies can effectively be used to motivate employees?
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Behavior modification and job design.
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Overseas posting and self-improvement courses.
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Promotions and holidays.
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Vouchers and gifts.
Correct Answer
A. Behavior modification and job design.Explanation
Behavior modification involves changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself. Job design itself to motivate and improve employee motivation. This can be done through job rotation, enlargement, and so on. Answers B, C, and D are all useful, but less effective.Rate this question:
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- 46.
Which one of these international transportation means is the cheapest?
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Trains.
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Ships.
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Planes.
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Trucks.
Correct Answer
A. Ships.Explanation
Ships are the cheapest international transportation means because they have lower fuel costs compared to planes and trucks. Ships can carry a large amount of cargo, reducing the cost per unit. Additionally, ships have lower maintenance and labor costs compared to planes and trucks.Rate this question:
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- 47.
What are some of the characteristics of money?
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Acceptability, divisibility, portability, visibility.
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Acceptability, durability, portability, visibility.
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Acceptability, divisibility, portability, durability.
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Acceptability, divisibility, stability, visibility.
Correct Answer
A. Acceptability, divisibility, portability, durability.Explanation
Visibility is irrelevant here. Acceptability means that the money can be readily accepted for purchase of goods and services or for debt. Divisibility means there is a wide range of denominations from notes to coins. POrtability means that it has to be light and easily moved around. Stability means the money should carry the same worth day to day. Durability means the money must last for a certain period of time and not be defaced or easily damaged.Rate this question:
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- 48.
Core competencies is something that a firm can do exceedingly well. It is a key strength. To have distinctive competency, a firm must meet three tests. Which of these is not a test?
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Positive word of mouth.
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Customer value.
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Competitor unique.
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Extendibility.
Correct Answer
A. Positive word of mouth.Explanation
Customer value means that the firm must make a disproportionate contribution to customer perceived value. Competitor unique means the firm has unique and superior features to competitors' capabilities. Extendibility means the firm has a product that can be used to develop new products/services or enter new markets.Rate this question:
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- 49.
What is not true of being a sole proprietor?
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Your personal assets cannot be used to settle debts.
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You have more flexibility in management and accounting.
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You pay lower tax rates.
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The company is easy to setup and dismantle.
Correct Answer
A. Your personal assets cannot be used to settle debts.Explanation
The greatest disadvantage is that one has unlimited liability for damages resulting from the business operations.Rate this question:
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