What are the three main forms of business organization?
|A)||corporations, proprietorships, and stockholders|
|B)||partnerships, corporations, and dividends|
|C)||sole proprietorships, partnerships, and corporations|
|D)||partner proprietorships, corporations, and sole partnerships|
Which is true of a sole proprietorship?
|A)||A sole proprietorship is often difficult and complicated to start up.|
|B)||Revenue for a sole proprietorship is usually higher than that for a corporation.|
|C)||Sole proprietors share decision making with others.|
|D)||Profits from a sole proprietorship are only taxed once.|
What does unlimited liability mean to the owner of a business?
|A)||The owner is responsible for all the company's debts.|
|B)||The owner has limited credit.|
|C)||The corporation is dissolved when the owner dies.|
|D)||The company will fail if the owner does not have all the skills needed to run the business.|
Which type of business organization is a partnership most like?
Which is NOT an advantage of forming a corporation?
|A)||The company continues even after one owner dies.|
|B)||There is limited liability for the founder|
|C)||Raising capital for startup is easier.|
|D)||Profits are taxed twice: at the corporate level and at the shareholder level.|
In order to become a corporation, what must a business have?
|A)||over 500 employees|
|C)||a corporate charter|
Which business structure contains both the benefits of a small business and a corporation?
Which type of business makes a finished product, such as an automobile?
How does a product get from a manufacturer to a wholesaler?
|A)||by a producer|
|B)||by a processor|
|C)||by an intermediary|
|D)||by a retailer|
Where do stores get the products that they sell?
Which is true of intermediaries, wholesalers, and retailers?
|A)||They buy and sell goods.|
|B)||They store goods for long periods of time.|
|C)||They ship goods.|
|D)||They divide up goods into smaller lots.|
In which type of business do most Americans work?
Which department in a company sets the price of a product?
Which department in a company pays the bills for the business?
Which best describes management's most important job?
|A)||Improving production efficiency and increasing profits.|
|B)||Monitoring the interdependence of functional areas of the business.|
|C)||Making future decisions by analyzing financial statements.|
|D)||Achieving goals by planning, controlling, and evaluating the effective use of resources.|