Econ Ch. 7-8

In the United States, you may_______________.

• start your own business to meet a need

• own and run any business as long as the laws are obeyed

• decide what fees to charge for a service or product

• all of the answers are correct

 

In the American Free Enterprise System, a business should keep ______down to increase income.

• innovation

• sales

• costs

• production

Sole proprietorships are

• difficult and costly to organize.

• businesses with more than one owner.

• the most numerous kind of business organization.

• mostly used by large business organizations.

One advantage of a partnership is that

• partners are likely to agree on all business decisions.

• adding partners brings more funds to the business for startup or expansion.

• each partner is subject to unlimited liability.

• the business continues even if one partner dies.

Pa Thao recently bought a store that carries the name of a well-known national ice cream company. Pa will buy her equipment and supplies from the company and pay for using its name. Her business illustrates a

• cooperative

• not-for-profit

• franchise

• none of the above

The American Red Cross and YMCA are examples of a

• cooperative

• not-for -profit

• franchise

• none of the above

Which of the following is NOT a factor that influences wealth accumulation?

• income

• taxes

• expectations

• cost of stocks

 

Which form of business ownership provides the greatest protection of the owner's personal assets

• sole proprietorship

• corporation

• cooperative

• partnership

The number of shares of stock to be issued by a corporation is determined by

• common stockholders

• company executives

• board of directors

• preferred stockholders

Stock that gives holders first claim on corporate dividends if a company earns a profit

• common stock

• equity stock

• venture stock

• preferred stock