Business Organizations

Which of the following is an advantage of a sole proprietorship?

• It is the least-regulated form of business organization

• It is an easy way to make a lot of money

• It is easy to get financing to start one

If a general partnership fails, who is responsible for the debts?

• Anyone who works for the partnership

• All of the partners

• Only the most senior general partner

A joining of two or more businesses that are involved in different stages of producing the same good or service is called a __________________?

• vertical merger

• cooperative

• horizontal merger

What are royalties?

• a percentage of earnings paid for a franchise

• fees paid to celebrities for using their names

• a percentage of profits paid to the government

Which of the following is a disadvantage of a sole proprietorship?

• personal liability

• legal constraints

• difficult to start up

What is collective bargaining?

• an organization of workers representing several different occupations

• negotiations of wages and other conditions of employment by an organization

• a situation in which the rights of labor have been set aside

How are wages for a particular job determined? (Mark all correct)

• by the equilibrium between the supply and demand for workers for that job

• by the amount of inflation in the economy

• by the Federal Wage and Hour department

A measure that bans mandatory union membership

• labor union

• productivity

• right-to-work

The value of a worker’s output

• labor union

• productivity

• right-to-work

An organization of workers that tries to improve working conditions, wages, and benefits for its members

• labor union

• productivity

• right-to-work