Question 1: Although most new businesses start out as sole proprietorships, few large businesses are organized this way. Why is the sole proprietorship such a popular form of ownership for new businesses? What features of sole proprietorship make it unattractive for growing businesses? What business forms would be more appropriate for a growing business?
Question #2: Explain how prices are determined in a free-market economy. During the recent recession, consumers were less willing and able to purchase products they had grown accustomed to buying. Describe how the supply and demand curves were affected by consumers’ decisions to pull back on their spending.
Question #3: Why would a U.S. company decide to form a strategic alliance with a company in another country? What kinds of ethical considerations might the U.S. company be faced with given possible differences in laws and standards between the two countries?