Principles of Business 7.01-7.02

A type of business ownership in which one or more of the owners does not have full liability is called a:

• general partnership

• limited partnership

• sole proprietorship

• service organization

Which type of ownership gives a business an exclusive territory, training and support during start up, and a competitive edge in the market?

• corporation

• franchise

• partnership

• sole proprietorship

he Scott Company decided to sell stock to raise capital. Under what form of business organization does the company operate?

• partnership

• cooperative

• corporation

• proprietorship

Which would probably result if a business reduced its marketing costs?

• increased cost of production

• decreased variety of consumer goods

• decreased need for customer contact

According to the marketing concept, which option demonstrates customer orientation?

• finding out what a buyer wants

• research a firm's competitive nature

• advertising the features of the product

• convincing a buyer to buy

What is marketing?

• is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

• is the selling of prodcuts

• is the activity of producing products and selling them for a price

• is a way to make a profit

The role of finance in business often involves:

• monitoring expenses

• paying employees

• buying supplies

• obtaining funds

A partnership is when

• owners share the profits and risks

• owners separate the profits and risks

• one owner gets all the profits

• when the company is public

When a corporation is a public corporation it means

• the community owns the company

• they are non-profit

• they offer shares of the company for sale

• they are a sole proprietorship

A stockholder is

• a person who owns a franchise

• a person who owns stock in a public company

• a person who co-owns a company

• a holder for socks