Fall Semester2020 Final

A(n) ___________ is an individual who accepts the risks and opportunities entailed by creating and operating a new business.

• proprietor

• partner

• entrepreneur

• officer

A(n) ________________ is a nation's basis for allocating it resources among its citizens.

• capital structure

• economic system

• distribution network

• ownership system

Which of the following responses best defines the term demand?

• willingness and ability of buyers to purchase a product, good, or service

• an inner desire that must be satisfied

• an order given to a supplier of a much-needed product

• a want and need felt by the consuming public in a free-market system

The term "supply" as encountered in the textbook is best defined as

• giving something to someone who needs if.

• the number of items a firm may have in its inventory at a given time.

• the area of a firm in which it keeps it wholesale stock for future use.

• willingness and ability of producers to offer a good or service for sale.

______________ are beliefs about what is right and wrong or good and bad.

• Motivators

• Cultures

• Collusion

• Ethics

Behavior that conforms to individual beliefs and social norms about what is right and good is referred to as______

• collusion

• social reaction

• ethical behavior

• GAAP

Ethics are based on individual beliefs and social concepts and vary from

• person to person

• situation to situation

• culture to culture

• all of the above

Which of the following legal forms of business is owned and usually operated by one person who is responsible for its debts?

• corporation

• general partnership

• sole proprietorship

• sole partnership

A sole proprietorship legally dissolves when

• sales exceed $1 million

• sales exceed $100 million

• the partners reorganize the firm's structure

• the owner dies

A ____________ is a business with two or more owners who share in the operation of the firm and are financially responsible

• corporation

• partnership

• limited liability corporation

• sole proprietorship