Unit 2 Business Classes

A sole proprietorship is difficult to start and provides limited liability.

• True
• False

Corporations are able to raise capital through issuing stock but also are exposed to double taxation. 

• True
• False

-All income is passed through to the owners based on their investment and is taxed on individual taxes (no double taxation)

• Limited Liability Corporation
• S Corp
• Franchise

-Group of people who join to do some activity that benefits the public-They work in areas such as education, healthcare, charity, etc-Free from corporate income tax

• Non Profit
• cooperative
• franchise
• joint venture

_____________ fluctuation in economic activity that an economy experiences over a period of time. A business cycle is basically defined in terms of periods of expansion or recession.

• Business cycle
• business functions
• Recession

_______________ the economy is growing in real terms (i.e. excluding inflation), as evidenced by increases in indicators like employment, industrial production, sales and personal incomes.

• Expansion
• Recession
• Trough

______________ the economy is contracting, Downturns in the cycle are known as recessions.

• Recession
• Expansion
• Inflation

_____________ creates or obtains products/services to sell. May include raw materials, processing, agriculture, manufacturing, services, or merchandising.

• Production
• Operation
• Accounting & Finance

_______________  ongoing activities designed support the primary functions of a business and keep it operating efficiently.

• Operations
• Accounting & Finance
• Management

____________ plans and manages financial resources and maintains records and information related to a business’s finances.

• Accounting & Finance
• Operations
• Production