CE 12 A-C Practice

Joan owns and runs her own business. She keeps all her profits, and takes on all of the risks of running the business.

What kind of business does Joan run?

• Corporation

• Proprietorship

• Corporation

• Joint-stock company

George and Jerry go into business together. They share the risks and profits of their business.

What kind of business do George and Jerry operate?

• Partnership

• Corporation

• Proprietorship

• Cooperative

George and Jerry create an organization called JG Associates. JG Associates is considered a legal person. The company's shareholders share the risks and profits.

What kind of business is JG Associates?

• Cooperative

• Proprietorship

• Partnership

• Corporation

Which of the kinds of businesses is the riskiest?

• Partnership

• Corporation

• Proprietorship

• Cooperative

What kind of business is the least risky?

• Partnership

• Cooperative

• Proprietorship

• Corporation

What is the main goal or an entrepreneur?

• Profit

• Public service

• Get elected to political office

• Exercise their 1st Amendment rights

What term describes someone who takes a risk to produce goods and services?

• Partner

• Proprietor

• Entrepreneur

• Investor

What effect do entrepreneurs have on competition?

• More competition

• Less competition

• No effect on competition

When the price of a good or service is higher, producers will

• produce more

• produce less

• raise prices

• go bankrupt

When the price of a good or service is lower, producers will

• produce more

• produce less

• advertise their products more

• pay more in taxes