Phases of Economic Development
A country depends mainly on farming, has little technology, and trades through barter. Which stage is it in?
A. Traditional Society
B. Take-Off
A. Traditional Society
Anna owns a small bakery, makes all the decisions, and keeps all the profits, but also takes all the risks. What type of business does she run?
A. Partnership
B. Sole Proprietorship
B. Sole Proprietorship
The economy is now diverse—technology is widespread, and industries produce a variety of goods and services. Which stage fits best?
A. Preconditions for Take-Off
B. Drive to Maturity
B. Drive to Maturity
A tech company sells stocks to the public and is governed by a board of directors.
A. Corporation
B. Sole Proprietorship
A. Corporation
The textile industry is expanding quickly, and the country’s GDP is growing year after year.
A. Take-Off
B. Age of High Mass Consumption
A. Take-Off
Three siblings open a small grocery store together, sharing the responsibilities and risks equally.
A. General Partnership
B. Corporation
A. General Partnership
The government signs agreements with foreign investors to start building factories and roads.
A. Preconditions for Take-Off
B. Drive to Maturity
A. Preconditions for Take-Off
A business owned and operated by one individual, with full control and unlimited liability.
Sole Proprietorship
This final stage is characterized by mass consumption, service industries, and high living standards.
Age of High Mass Consumption
Two or more individuals share ownership, responsibilities, and profits in this business form.
Partnership