Chapter 5 - Business Organization

The largest number of US businesses employ

• more than 100 people

• between 50 and 100 people

• between 10 and 20 people

• no employees other than the owner

Which of the following is not one of the common activities of all businesses?

• producing goods and services

• employing and training personnel

• marketing goods and services

• maintaining business records

A retailer is an example of a(n)

• extractor

• producer

• intermediary

• service business

The form of ownership that gives one person sole control of all business decisions is the

• proprietorship

• partnership

• corporation

• franchise

True or false: All investors in a general partnership have full liability for the debts of the business

• True

• False

The people who make the major policy and financial decisions in a corporation are the

• investors

• board of directors

• managers

• owners

A special form of business organization that combines advantages of a corporation and a partnership is a

• franchise

• nonprofit corporation

• cooperative

• limited liability company

True or false: the direction for a business comes from its policies and procedures

• True

• False

The obligation to complete specific work is

• responsibility

• authority

• accountability

• recognition

Which of the following is not shown on an organizational chart?

• the structure of an organization

• work relationship

• job descriptions

• classification of jobs