POB - Chapter 5

Most U.S. businesses are quite SMALL.

• True

• False

What is the MOST IMPORTANT role in that businesses play in the U.S. economy?

• create jobs

• create goods and services to be sold

• pay taxes

• make people feel important

________ takes resources from nature such as coal, oil.

• Manufacturers

• Intermediaries

• Farmers

• Extractors

__________ get supplies from other producers and convert them into products.

• Extractors

• Farmers

• Manufacturers

• Retailers/Wholesalers

Retailers carry out activities for consumers rather than selling products.

• True

• False

All of the following are examples of specialized intermediaries, EXCEPT:

• transportation companies

• storage centers

• advertising agencies

• Walmart

Double-taxation occurs in which type of business ownership?

• proprietorship

• partnership

• corporation

• franchise

The easiest type of business ownership to form is a ___________.

• proprietorship

• partnership

• corporation

• franchise

Who owns a corporation?

• CEO (Chief Executive Officer)

• President of the company

• shareholders

• Board of Directors

In a LIMITED LIABILITY COMPANY, if the business fails, the owners’ personal belongings are protected.

• True

• False