Business Structures + Mastery Test Falll 2023 Questions and Answers As you read these two scenarios, think about the possibilities that exist when starting a business and the choices that must be made. Then answer the question that follows.Scenario 1 Kristina wants to expand her custom furniture business. She's been building furniture in her basement for a few years now. She started out selling only to friends and family and then began to sell online. Now she's getting so many orders that she can barely keep up with them all. She knows that to expand, she needs to start a factory and hire workers.She decides on a location about 10 minutes from her home. Over dinner with a friend, she explains how fortunate she is to live near a major city with a big airport, a good highway system, and an educated workforce and to have a business in a state with minimal regulations and low taxes.Scenario 2 Andrew has been creating custom car accessories in his garage for years. He's been selling so many accessories online that he can barely keep up with his orders. He lives in a small town, so there aren't many people he can employ to work for him. He pays a significant amount of his income in taxes as well. He realizes he might need to move to expand his business. But he's dreading the trip to investigate possible locations because it's a two-hour drive on narrow two-lane roads to reach the nearest major airport.What is driving Andrew's and Kristina's decisions on where to expand their businesses?Ans- Several factors are driving Kristina's and Andrew's business decisions. Here are a
few:
-tax rates -availability of labor -distance to a major airport -access to highways -transportation infrastructure Select the correct answer from each drop-down menu.In a market economy, _______ brings more, higher-quality products and lower _______ for consumers. In a market economy, the incentive of the producer is to make a _______. The potential for profit and limited government intervention are what make _______ thrive in a market-based economy.Legally protected _______ ensure that people have collateral, enabling them to take out loans. Ans- -competition -prices -profit 1 / 2
-entrepreneurs -property rights Drag the tiles to the correct boxes to complete the pairs Match each phrase with the scenario that illustrates it. Ans- The computer accessories
that Javier is making: profit motive
Susan uses her office building: property rights
While nervous that foreign companies: international competition
Because people bought the new food item: consumer sovereignty
Sam realized that his business: wealth creation
Read this scenario, and then answer the question that follows.Richard is excited to start his trucking business. After taking out a loan, he decides to buy 10 used trucks and to hire drivers who live in his small town, which is 100 miles from the nearest big city.What potential economic consequences has Richard not taken into consideration while
making his decision? Ans- Richard needs to consider these points:
-If the town is 100 miles from the nearest big city, are enough goods that need to be trucked being produced in the area?-Used trucks may incur expenses in the form of maintenance and repairs. Will the business have enough revenue to support these costs?-How much money will need to be invested in fuel for the trucks?-Will he find enough drivers with sufficient skills to drive trucks in his small town?Question 1 You think you've found the computer that you would like to buy. You've done your research, and the cheapest computer you have found that meets your needs costs $1,100. The price includes the computer, printer, software, and sales tax. Use this information to answer the following questions about the costs and benefits of your purchase.Part A What is the benefit to you of buying a computer? List all the ways you will benefit from buying this item. Think about how you might use it for school, work, entertainment, communication, and so on. Ans- The computer will be extremely useful for these
activities:
-studying -watching movies -playing games -keeping in touch with friends and family -using social media
- / 2