Test Prep BUSINESS-ENVIRONMENT-AND-CONCEPTS dumps - 100% Pass Guarantee!

Correct Answer: B

Choice "b" is correct.

Rule: Regardless of the contributions and obligations of the partners, unless the partnership agreement

specifically states otherwise, all partners are entitled to an equal share of the profits.

Choices "a", "c", and "d" are incorrect, per the above rule.

Correct Answer: D

Choice "d" is correct. Where an agent enters into a contract on behalf of a principal and discloses the existence and identity of the principal and acts with authority, the principal is liable and the agent is not liable. Here, Jones signed the contract with an indication that he was signing for the corporation. The president of a corporation is an agent of the corporation and has apparent authority to enter contracts that appear to be within the ordinary scope of the corporation's business. The restaurant repairs here appear to be with the scope of Food Corp.'s business. Therefore, Food Corp. will be bound because Jones had at least apparent authority. Choice "a" is incorrect, per the rule stated above. Choice "b" is incorrect. The president signed as acting on behalf of the corporation, thus disclosing the principal. Choice "c" is incorrect, per the rule stated above.

Correct Answer: B

Choice "b" is correct. An increase in nominal wages represents an increase in input costs. This would shift

the aggregate supply curve to the left resulting in a decrease in real GDP and an increase in the overall

price level.

Choice "a" is incorrect. Real GDP would decrease, not increase.

Choice "c" is incorrect. The price level would increase, not decrease.

Choice "d" is incorrect. Real GDP would decrease, not increase.

Correct Answer: C

Choice "c" is correct, as it is not a factor that would cause market competitiveness to be even stronger.

Choices "a", "b", and "d" are incorrect because they are all reasons that competition becomes an even

stronger force that impacts the firm's profitability. The following are situations that would cause competition

to be an even stronger force impacting the profitability of a firm:

?The market is not growing fast.

?There are several equal-sized firms in the market.

?Customers do not have strong brand preferences.

?The costs of exiting the market exceed the costs of continuing to operate.

?Some firms profit from making certain moves to increase market share.

?The various firms in the market use different types of strategic plans.

Correct Answer: C

Choice "c" is correct. The factor of related and supporting industries deals with whether there are suppliers of material inputs that exist within a nation or whether there are rival firms who are competitive in the international environment, both of which would increase the nation's competitive advantage. Choice "a" is incorrect. If a nation has a strong set of factors of production (such as low-cost, high quality raw material inputs), that are required in a given industry, it will fare better with regard to competitive advantage. However, this factor is different from the "many rival domestic firms which are all competitive in the global marketplace for a product" as stated in the question. Choice "b" is incorrect. The factor of conditions of domestic demand related to the nation's domestic demand for the product, which is directly related to the ability of the nation to fare better with regard to competitive advantage. However, this factor is different from the "many rival domestic firms which are all competitive in the global marketplace for a product" as stated in the question. Choice "d" is incorrect. The factor of firm strategy, structure, and rivalry relates to the practices of a nation with respect to how the companies are managed and organized, along with the laws of the nation that regulate the formation of the companies, and how intense the rivalry is with respect to competing firms in the nation. However, this factor is different from the "many rival domestic firms which are all competitive in the global marketplace for a product" as stated in the question.