Types of business activities

Which of the following statements about business is incorrect?

• A system where goods are manufactured and distributed free of cost.

• An organisation where people work for meeting their own needs.

• An institution which prepares people for future challenges.

• All of these

To which type of businesses belong the education, entertainment and information technology?

• Manufacturing

• Hybrid

• Service

• None of these

A grocery store is an example of which type of business activity?

• Service

• Merchandising

• Manufacturing

• Hybrid

A ______________ business is a mixed type of business.

Sara’s Hair Palace is a small, locally owned beauty salon in Sterling. This represents what type of business?

• corporation
• partnership
• sole proprietorship

A business partnership has ___________ who share the risks and the profits.

• One owner
• No more than three owners
• Two or more owners
• Five or more owners

What do we call a person who is willing to take the risks of starting a business in order to make a profit?

• Proprieter
• Partner
• Entrepreneur
• Incorporater

Which of the following is a disadvantage of sole proprietorships:

• Limited capital
• Control 
• Privacy
• Tax liability

What is a company called that sells stock to raise money?

• Partnership
• Corporation
• Sole Proprietorship
• Limited Partnership

An entrepreneur can choose to have which type of business organization?

• Sole Proprietorship
• Partnership
• Corporation
• All of the above