Business Mgmt Final 2015-16

Which of the following is an example of a service business

• Equipment Rental
• Insurance agency
• home cleaning 
• All are examples of a service business

Taxes that are unique to a corporation are

• a filing fee, an organization tax, an annual state tax, and a federal income tax
• a service is intangible and a product is tangible
• The owner pays less income tax than corporations.
• the life of the corporation is not affected

The rate at which people enter and exit employment in a business during a year

• turnover
•  transfer
• promotion
• discharge

The difference between a product and a service is

• A service is intangible and a product is tangible
• A service is tangible and a product is intangible

The process of creating or improving a product is known as

• product development
• joint ventures
• service economy
• promotion 

Which practice allows a business to sell its assets to pay their debts?

• bankruptcy
• licensing 
• monopoly 
• monopoly 

The main source of revenue for most local governments is the

• property room
• property tax
• income tax
• sales tax

How do tariffs affect the prices of foreign goods? 

• prices remains the same
• price decrease 
• price increase
• price fluctuates at a quick pace

A corporation with taxable earnings of $71,000 has a tax rate of 15% on the first $50,000 and a 25% tax rate on the next $25,000. The federal income taxes will amount to ?

• 12755
• 11,550
• 12,500
• 12,750

Approximately how many businesses are formed as proprietorship's?

• one out of two
• two out of three
• three out of four
• four out of five