Intro to Busn- 2nd Quarter Benchmark Review (Ch 6, 7, 8)

What are the three main forms of business organization?

• partnerships, corporations, and dividends
• corporations, proprietorships, and stockholders
• sole proprietorships, partnerships, and corporations
• partner proprietorships, corporations, and sole partnerships

Which is true of a sole proprietorship?

• A sole proprietorship is often difficult and complicated to start up
• Revenue for a sole proprietorship is usually higher than that for a corporation.
• Profits from a sole proprietorship are only taxed once
• Sole proprietors share decision making with others.

What does unlimited liability mean to the owner of a business?

• The owner is responsible for all the company's debts
• The owner has limited credit.
• The company will fail if the owner does not have all the skills needed to run the business
• The corporation is dissolved when the owner dies

Which is NOT an advantage of forming a corporation?

• The company continues even after one owner dies.
• There is limited liability for the founder
• Raising capital for startup is easier
• Profits are taxed twice: at the corporate level and at the shareholder level.

Which business structure contains both the benefits of a small business and a corporation?

• cooperative
• car sharing
• nonprofit organization
• franchise

Which type of business makes a finished product, such as an automobile?

• industry
• manufacturer
• processor
• producer

How does a product get from a manufacturer to a wholesaler?

• by a producer
• by a processor
• by an intermediary
• by a retailer

Which is true of intermediaries, wholesalers, and retailers?

• They store goods for long periods of time.
• They divide up goods into smaller lots.
• They ship goods
• They buy and sell goods.

In which type of business do most Americans work?

• intermediary
• service
• wholesale
• retail

Which department in a company sets the price of a product?

• production
• marketing
• finance
• accounting