Business Chapter 6

An advantage of owning a partnership is that banks are more often willing to lend money to partnerships than sole proprietorships

• True

• False

About half of all businesses in the United States are sole proprietorships

• True

• False

Income from a corporation is taxed twice.

• True

• False

There are three (3) main types of business organizations; sole proprietorships, partnerships, and corporations.

• True

• False

A major disadvantage of owning a sole proprietorship is that the owner has limited liability

• True

• False

The process of achieving company goals by planning, organizing, directing, controlling, and evaluating the effective use of resources is called

• marketing

• production

• procurement

• management

The most common type of business in the United States are

• sole proprietorships

• "mom and pop" stores

• corporations

• partnerships

Unlimited liability means

• the owner is responsible for accidents that occur on business property

• the owner shares the liability with the company's stockholders

• the owner is responsible for the company's debts

• the owner must have insurance.

Companies benefit when all functional areas

• belong to a union

• operate independantly

• work together

• monitor each other

Retailers get their goods from

• consumers

• wholesalers

• partnerships

• dealers