Case Study Multiple choice questions(choose one best answer)

1) Twenty-five years ago, Asafumi Yamashita arrived in Paris. Learning that there was a need for Japanese vegetables, Yamashita invested $500 ("seed capital") to purchase seeds of specialty varieties of Japanese vegetables. He strategically grew his pioneering business of growing hard-to-find Japanese vegetables from his backyard garden and supplied them to exclusive Japanese restaurants in Paris. Realizing that his backyard would restrict the yield of produce grown, Yamashita focused on producing high-quality products.

Today, Yamashita still works alone to supply his highly sought-after Japanese vegetables to seven exclusive Michelin-Star chefs at prices that are four times higher than those of competing farmers.

What describes Yamashita's contributions to France's economy?

1. Contribution of income taxes
2. Focus on meeting customers' needs and preferences
3. Job creation

2) Michael Burnham has been instructing yoga online long before the COVID-19 pandemic was declared in March 2020. Offering free online yoga classes attracts traffic to Burnham's website and the effectiveness of Burnham's yoga training programs results in a 92 percent conversion rate to paid users.

To enhance the training experience for clients, Burnham applied for and received bank approval for a $15,000 business loan to upgrade her yoga studio, video camera, and sound system.

While completing loan documents, the banker strongly recommended that Burnham purchase creditor insurance because her business is legally established as a sole proprietorship. The banker explained that creditor insurance can help make loan payments or pay the loan balance or if unexpected events, such as critical illness or death, occurs.

What feature about a sole proprietorship would prompt Burnham's banker to make such a recommendation?

1. The sole proprietorship's financial resources are limited to its owner's ability to access funds.
2. Sole proprietorships are easy to dissolve
3. The sole proprietorship lacks long term continuity, as it terminates with the passing of its owner