Business Organizations

Which of the following might upset the board of directors in a corporation?

• If the company's stocks are bought on an exchange

• if the company's stocks are sold on an exchange

• if the company's stocks increase in value

• if the company's stocks lose value

Suppose a firm that makes appliances merges with a company that makes clothes, and later it buys a slaughter house. What is this combination called?

• franchise

• horizontal merger

• conglomerate

• cooperative

What government agency's regulation would MOST LIKELY require factory workers to wear hard hats, safety glasses, and ear plugs?

• Equal Employment Opportunity Commission (EEOC)

• Occupational Safety and Health Administration (OSHA)

• Bureau of Labor Statistics (BLS)

• Consumer Product Safety Commission (CPSC)

Which of the following could be a disadvantage of a sole proprietorship?

• stockholders could withdraw investment

• limited life

• unlimited liability

• he will have to take on a partner if he wants to expand the business

Bob and Tom own a restaurant together. They share equal responsibility and each receive 50% of the profits. What kind of business organization is this?

• Sole Proprietorship

• Cooperative

• Limited Liability Corporation

• General Partnership

Some businesses are not organized to maximize profits. Instead their goals are to work for the good of all their members or to work for the good of society. This describes

• franchises and multinationals

• cooperatives and nonprofits

• general and limited partnerships

• horizontal and vertical mergers

What type of business might offer low-interest loans to its members?

• consumer cooperative

• service cooperative

• conglomerate

• trade organization

In general, what is the correlation between education and income.

• A bachelors degree will guarantee financial success

• The more education you have, generally, the more income you will earn

• Education is no longer required for most careers

• A high school graduate will never earn as much as a college graduate.

In the United States, which type of business accounts for the greatest share of revenues?

• sole proprietorship

• partnership

• shareholders

• corporation

The board of directors of a corporation is responsible for

• running the company's day-to-day operations

• hiring officers / executives to run the business

• determining the price of the company's shares

• paying dividends to shareholders