A customer has sent you a claim to replace his stereo system that was damaged by an electrical surge. Due to the nature of his extended warranty and the circumstances surrounding the damage, you must deny his claim. You can, however, offer him a rebate on his next purchase.

What can you include in your denial to rebuild the customer’s confidence in your products?

a. Exact quotes from the warranty

b. Resale or promotional information about your upgraded stereo systems

c. Professional references for your employees

3. What are your goals when sending a message that refuses credit? Check all that apply.

a. Avoiding language that causes hard feelings

b. Retaining the customer on a cash basis

c. Avoiding disclosures that could cause a lawsuit

d. Preparing for possible future credit without raising false expectations

Which of the following statements is correct? large corporations are taxed more favorably than sole proprietorships. corporate stockholders are exposed to unlimited liability. due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u.s. businesses (in terms of number of businesses) are organized as corporations. most businesses (by number and total dollar sales) are organized as partnerships or proprietorships because it is easier to set up and operate in one of these forms rather than as a corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, mainly because corporations have important tax advantages over proprietorships and partnerships. most business (measured by dollar sales) is conducted by corporations in spite of large corporations’ often less favorable tax treatment, due to legal considerations related to ownership transfers and limited liability.

Corporations with suppliers, vendors, and customers all over the globe are referred to as : a) global corporations b) international corporations c) multinational corporations d) multicultural corporations

Cash flow is often a problem for small businesses. how can an entrepreneur increase cash flow? a) locate lower-priced suppliers. b) forego sending in estimated tax payments to the irs c) shorten the terms on a bank loan to pay it off more quickly d) sell more low-margin items.