business organization

 The government document that grants permission to establish a corporation is called a

•  charter.

•  partnership agreement.

•  stock certificate.

•  limited liability agreement.

 A business run by a single person is a

•  partnership.

•  sole proprietorship.

•  corporation.

•  limited liability corporation.

 In a retail business, the stock held in reserve is called

•  raw materials.

•  capital.

•  inventory.

•  profits.

 Which of the following phrases best defines the term limited partnership ?

•  an organization that limits liability to the corporation rather than the individual owners

•  a partnership in which at least one partner has less responsibility in the business

  operations and less liability for business losses

•  a business that is limited to three or fewer investors

•  a business model that combines aspects of corporations and partnerships

 A document certifying ownership of part of a corporation is a

•  charter.

•  dividend check.

•  stock certificate.

•  bond.

 To get a picture of a business’s overall expenses and profits, you should look at its ______ .

•  inventories

•  dividends

•  depreciation

•  income statement

 Which of the following is a noncash charge?

•  wages

•  dividends

•  depreciation

•  horizontal merger

 A company with four or more businesses that make unrelated products is called a ______ .

•   horizontal merger

•  vertical merger

•  conglomerate

•  multinational

 Which of the following is an advantage of a multinational?

•  They produce tax revenue for the countries where they do business.

•  They use cheap labor.

•  They export scarce natural resources.

•  They help preserve traditional ways of life.

 If the activities of a nonprofit organization produce revenues, the organization uses the money to ______ .

•  pay dividends to its members

•  join a chamber of commerce

•  further its work

•  grow the business