Intro to Business - Chapter 5

Every business performs all of the following activities EXCEPT:

• maintaining business records

• manufacturing products

• raising capital

• buying goods and services

Which major category of business is the fastest-growing in the U.S. economy?

• producer

• manufacturer

• intermediary

• service business

Proprietorships:

• are owned and controlled by two or more people

• account for the largest % of business revenues in the U.S.

• are the easiest form of business to start

• protect the liability of business owners for investment

Of the MAJOR forms of business ownership in the U.S., the most difficult to form is a:

• Partnership

• Franchise

• Corporation

• Proprietorship

Which of the following would typically NOT be specified in a partnership agreement?

• the business name

• the number of hours per week the business will operate

• the amount of investment of each partner

• the level of authority each partner has

A written legal document defining ownership and operating procedures for a corporation are:

• corporate code of ethics

• partnership agreement

• articles of confederation

• articles of incorporation

A precise statement of results a business expects to achieve is a:

• mission statement

• goal

• policy

• procedure

The largest number of U.S. businesses employ

• More than 100 people

• Between 50 and 100 people

• Between 10 and 20 people

• No employees other than the owner

A retailer is an example of a(n):

• Extractor

• Producer

• Intermediary

• Service Business

The people who make the major policy and financial decisions in a corporation:

• Investors

• Board of Directors

• Managers

• Owners