Intro to Business Review

What do business owners consider when they select a business ownership structure?

• Personal circumstances, type of business, and product mix

• Product versatility, financial needs, and advertising strategies

• Personal circumstances, financial needs, and type of business

• Product versatility, advertising strategies, and personal circumstances

One of the characteristics of the form of business ownership known as an LLC is that

• this kind of business can last indefinitely.

• it is required to have at least three owners (members).

• the IRS collects taxes based on the LLC’s gross income.

• the owners’ personal property cannot be taken to pay the business’s debts.

One reason a physicians’ practice might form a partnership as an LLP is to

• ensure that the business experiences unlimited liability.

• take advantage of higher dividend returns on shares of its stock.

• protect innocent partners from the malpractice of another partner.

• permit the general public to purchase licensing rights in the practice.

ABC Specialty Wear is the only company that has written permission to use a national football team’s logo on its sportswear. This is an example of a

• product trade-name contract.

• sole proprietorship.

• licensing agreement.

• limited joint-venture contract.

Which of the following statements is true regarding joint ventures:

• Joint-venture arrangements are usually short-term relationships.

• Joint ventures are used only when it is necessary to raise a lot of capital.

• Large corporations are the only business structures that can benefit from joint ventures.

• An independent attorney must always be consulted before signing a joint-venture agreement.

Businesses in trade industries that offer discount prices usually offer

• full services.

• limited services.

• plush interiors.

• elaborate fixtures.

Which of the following statements about wholesale trade businesses is true:

• They operate from a variety of business premises.

• They operate only from mail-order warehouses.

• They operate only from distribution centers.

• They operate in areas convenient to ultimate consumers.

Which of the following is the best reason for studying economics:

• To find the best use for resources and supplies

• To determine which occupations interest you

• To learn how to invest money and express social responsibility

• To prepare for effective decision making and responsible citizenship

The heart of economics is

• trade-offs.

• wants.

• resources.

• decision making.

What do consumers, producers, and the owners of resources do with money payments to create a flow of resources, goods, services, and money payments?

• Exchange

• Produce

• Distribute

• Consume