BP Ch. 5 Test

All businesses buy goods and services

• True

• False

Service jobs are the lowest paying jobs in the U.S. economy.

• True

• False

Most states require proprietorships to register a business name.

• True

• False

A corporation’s owners have access to profits only if the board of directors approves it.

• True

• False

A cooperative is a special type of corporation that allows all income to be passed through to owners based on their investment and is taxed on their individual tax returns.

• True

• False

A goal is a precise statement of results the business expects to achieve.

• True

• False

There is no difference between policies and procedures.

• True

• False

Unity of command is the number of employees who are assigned to a particular work task and manager.

• True

• False

Most businesses in the US are

• Owner only

• Over 100 employees

• 20-99 Employees

• 1-19 employees

The form of ownership most common among U.S. businesses is

• proprietorship

• corporation

• partnership

• nonprofit.