Becky, the CEO of an electronics retailer, is looking at the corporate structure that groups employees by specialties, such as store sales, HR, and accounting. This is an example of a functional structure.

Which of the following statements is true regarding sole proprietorships?

A. Equity capital from outside sources can be easily raised. B. The proprietor has authority to make management decisions subject to rules set by the Small Business Administration. C. A sole proprietorship located and registered in Florida also may operate in Nevada and Michigan without having to register formally in those states. D. An advantage of the sole proprietorship is its continuation after the proprietor dies.

An ex-gratia claim made when a project is closed down is made when:

A) There is no contractual basis for a claim. B) The project company fails to perform to the terms of the contract. C) The client company fails to perform to the terms of the contract. D) A third party causes either the client or project company to fail to perform to the terms of the contract.