Ent. Unit 5 Exam Review - KM

Which type of business ownership provides limited liability for the owner(s)

• Corporation

• Sole proprietorship

• General partnership

• All of the above

One advantage of a general partnership over a sole proprietorship is that a general partnership

• provides limited liability

• is a corporation

• provided unlimited liability

• can rely on more than one person for financial backing

A business owner with unlimited liability

• could have to sacrifice personal money and possessions to pay business debt

• is not personally responsible for the debts of the business

• is a shareholder of a corporation

• would not have to sacrifice personal money and possessions to pay business debt

One advantage of a corporation as compared to a sole proprietorship is

• a corporation is easier to set up and requires less paperwork

• a corporation provides limited liability for its owners

• a corporation has fewer shareholders 

• a corporation has a partnership agreement

Requiring food service workers to wash their hands before serving meals is a form of 

• ergonomics

• risk reduction

• risk transfer

• infringement

The most important quality in an insurance package is that it 

• is inexpensive

• meets the policyholder's needs

• is sold by an exclusive agent

• covers catastrophic risk

Liability insurance provides protection when 

• a business's action or lack of action injures someone

• a business's vehicles are damaged

• electronic data or software is lost due to a computer malfunction

• a business has a fire or damage from the weather

How does the price of a product change as it moves along a distribution chain? 

• the price decreases to provide each business in the chain with a profit

• the price increases to provide each business in the chain with a profit

• the price decreases because the product quality decreases

• the price increases because the product quality increases

The importance of courtesy to your clients is most likely explained in a 

• customer service policy

• scheduling policy

• production management policy

• maintenance policy 

Which of the following describes a typical distribution chain for a shirt purchased from a store in the mall (Like Old Navy)? 

• manufacturer to wholesaler to customer

• manufacturer to wholesalers to retailer to customer

• wholesaler to manufacturer to retailer to customer

• manufacturer to retailer to wholesaler to customer