Econ: Unit 3 Test Review

What does the term limited life mean?

• The business continues if the owner leaves

• The business has a glass ceiling

• The business closes if the owner leaves

• The business is heavy regulated by the government

What is a major advantage of having a sole proprietorship?

• The owner keeps all the profits

• The owner has to give all profits to the employees

• The owner has no liability

• The owner can ignore labor laws

What is a business owned/managed by a single person called

• Corporation

• Cooperative

• Sole Proprietorship

• Limited Liability Partnership

A business organization is defined as an enterprise that produces goods/services, usually for profit.

• Ture

• False

A business owned by two people that agree on how profits, losses, and responsibilities are shared is called a(n)

• partnership

• limited partnership

• limited liability partnership

• cooperative

What advantage does a partnership have over a sole proprietorship?

• limited regulations

• easy to open/close

• skilled labor

• no limited life

What is a disadvantage of a partnership but not sole proprietorship?

• unlimited liability

• stock options

• potential for conflict

• limited life

The name of someone who owns stock/shares of a corporation is called a(n)

• CEO

• director

• stockholder

• CFO

A public corporation has stock that _______ while a private corporation has stock that _________

• is freely bought/sold

  cannot be freely bought/sold

• is limited

  is unlimited

• cannot be freely bought/sold

  is freely bought/sold

• both do not offer stock options

What is a major disadvantage for corporations?

• limited funds

• limited life

• skilled managers

• loss of control