Chapter 5 - Business Organizations

Which of the following type of business is NOT a producer?

• Pharmacy

• Appliance factory

• Coal mine

• Chicken farm

Of the major forms of business ownership in the United States, the most difficult to form is a

• partnership

• corporation

• franchise

• proprietorship

A written legal document defining ownership and operating procedures and conditions for a corporation is called the

• corporate code of ethics

• articles of confederation

• partnership agreement

• articles of incorporation

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

• stockholders

• owners

• board of directors

• partner

A unique business organized by two or more other businesses to operate for a limited time and for a specific project is called a

• joint venture

• limited liability company

• limited liability partnership

• nonprofit corporation

A(n) __ is a written contract granting permission to operate a business to sell products and services in a set way.

• license

• partnership agreement

• cooperative agreement

• franchise

"After receiving a shipment, the warehouse supervisor and warehouse clerk must check the goods against the shipping invoice to verify that all items have been delivered as required. If the items are satisfactory, the supervisor may take delivery by signing and dating the invoice."

The above is an example of a

• policy

• mission statement

• goal

• procedure

A major advantage of a functional organizational structure is that

• people work with others who have the same skills.

• people working in one function have little interaction with people in other parts of the business.

• all of the people with similar jobs will be paid the same salary.

• people often become more focused on their specific function than on the success of the whole business.

Employees at the Trexel Company are frequently confused about their assignments, and many employees are unclear about exactly who they report to. Trexel Company does not seem to provide an adequate

• mission statement

• unity of command

• span of control

• matrix source

Most U.S. businesses have no employees other than the owner.

• True

• False