Economics Chapter 3 Review

Which of the following means limited life?

• When a business continues to exist, even after the business owner dies, quits, or sells the business

• When a business ceases to exist when the business owner dies, quits, or sells the business

• When a business owner is personally and fully responsible for all debts incurred by the business

• When the business itself is responsible for all of its debt, and the business owners' assets are safe in case of debt

Which of the following means unlimited life?

• When a business continues to exist, even after the business owner dies, quits, or sells the business

• When a business ceases to exist when the business owner dies, quits, or sells the business

• When a business owner is personally and fully responsible for all debts incurred by the business

• When the business itself is responsible for all of its debt, and the business owners' assets are safe in case of debt

Which types of businesses have limited life? (Check all that apply)

• Sole Proprietorships

• Corporations

• Parnterships

• Nonprofit Organizations

Which type of business has unlimited life?

• Sole Proprietorship

• General Partnership

• Corporation

• Limited Partnership

Which type of business is considered its own legal entity?

• A Corporation

• A Sole Proprietorship

• A General Partnership

• All of these are their own legal entities

If a corporation is "its own legal entity" that means it is...

• Not responsible for more than the amount of money invested in the business

• Only responsible for paying taxes once

• The same, legally, as a person. It can sue others and be sued

• Made up of two or more businesses in different industries

Who is at the top of the corporate structure?

• The CEO/President

• The Board of Directors

• The Various Vice President Positions

• The Stockholders

What does a Chamber of Commerce do?

• Sponsor events like restaurant weeks that promote small businesses

• Lobbies for favorable business laws

• Promotes the welfare of businesses who pay to be members

• They do all of these

What does a Better Business Bureau do?

• Protects consumers

• Provides information on companies like records, complaints, and inquiries

• Both of these

• Neither of these

To calculate a company's CASH FLOW, you need to take...

• Revenue - Expenses = Cash flow

• Revenue - Profit - Expenses = Cash Flow

• Revenue - Profit - Depreciation = Cash Flow

• Revenue - Expenses - Depreciation + Depreciation = Cash Flow