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20 Cards in this Set
- Front
- Back
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____________ is the legal obligation to pay debts.
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Liability
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Which type of business organization has shareholders?
a) corporation b) sole proprietorship c) limited liability partnership d) general partnership |
a
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Which type of cooperative sells merchandise to its members at reduced prices?
a) consumer b) service c) producer d) franchise |
a
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A partnership is a business organization owned by
a) one or more individuals. b) two or more individuals. c) individuals and stockholders. d) one general partner and many stockholders. |
b
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Which of the following is NOT a government requirement when starting a sole proprietorship?
a) to obtain a site permit, if not working out of home b) to give clients 90 days notice prior to shutting down operations c) to obtain a business license d) to register a business name |
b
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5. In a limited partnership,
a) all partners have unlimited liability. b) all partners actively manage the business. c) only one partner is required to be general partner. d) all partners are required to invest an equal amount of money. |
c
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6. A corporation can offer as many shares of stock as are allowed by the
a) shareholders. b) regulators. c) investors. d) corporate charter. |
d
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In a limited liability partnership, all partners
a) are free from liability. b) have personal liability. c) are required to be general partners. d) are limited from personal liability in certain situations. |
d
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A merger that combines more than three businesses that make unrelated products is called a
a) horizontal merger. b) conglomerate. c) multinational. d) vertical merger. |
b
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Which of the following is an advantage of a sole proprietorship?
a) not highly regulated by the government b) limited personal liability c) unlimited access to resources d) permanence of business |
a
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In return for a fee to a franchiser, a business owner receives the right to
a) sell the franchiser's stocks and bonds. b) run the business in the way he or she wishes. c) form a partnership with the franchiser. d) sell the franchiser's goods and services. |
a
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The most common form of business organization is the
a) corporation. b) sole proprietorship. c) general partnership. d) franchise. |
b
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One of the ways a corporation can raise money is by
a) selling stock on the stock market. b) buying bonds from other corporations. c) demanding money from the government for research and development. d) giving shares to the founders. |
a
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The most important decisions in a corporation are made by the
a) investors. b) stockholders. c) board of directors. d) founders of the company. |
c
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Which of the following is an example of a merger?
a) An individual buys a franchise. b) Two individuals form a partnership. c) One company combines with another company that supplies it with raw materials. d) A company sells bonds to raise money for expansion. |
c
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Museums, public schools, and YMCAs are all
a) exempt from paying income taxes. b) completely supported by the government. c) promoted by trade associations. d) supported by professional organizations. |
a
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A disadvantage of a franchise is that the franchise owner must
a) sacrifice some freedom in return for the parent company's guidance. b) send all profits to the parent company. c) guarantee product quality. d) compete with other franchises. |
a
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Which is NOT a type of partnership?
a) limited b) cooperative c) general d) limited liability |
b
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Almost all non-profit organizations
a) sell goods to low-income individuals. b) are fully funded by the government. c) provide services rather than goods. d) are in the business of limiting the growth of corporations. |
c
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Most large businesses are
a) sole proprietorships. b) general partnerships. c) corporations. d) cooperatives. |
c
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