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