1. In a socialist economic system, _____.
individuals own and operate all businesses
very few people work for government organizations
competition is restricted in major industries
there is no concept of small businesses owned by individuals
demand and supply have no role to play in the pricing of products and services
2. Which of the following is true of limited liability companies?
They are taxed like a C corporation.
They are very complex and difficult to run.
They require members to regularly hold meetings
They are established for a specific project or for a limited time.
They protect the members' personal assets in case of lawsuits
3. Many countries do not permit foreign companies to purchase and operate facilities in their country. A company that wants to do business in such a country may share the business costs with a firm from the host country by forming a:
direct investment.
greenfield venture.
corporation.
joint venture.
sole proprietorship.