Business Unit Test

Which of the following is FALSE about a sole proprietorship?

• the owner has unlimited liability
• they are easy to start
• profits are taxed once
• recording keeping is costly

A furniture factory makes its products from wood and other raw materials. It is called a:

• retailer
• wholesaler
• manufacturer
• distributor

A momentary state or condition where the quantity of a product supplied equals the quantity demanded for the same product is known as which of the following?

• surplus
• demand
• shortage
• equilibrium

Recruiters examine the process for filling vacancies with hiring managers in which function?

• marketing
• management
• human resources
• strategy

Which of the following provisions would you expect to find in a partnership agreement?

• how to resolve conflicts
• how to split profits or losses
• the succession plan
• how to alter the ownership structure
• names of the partners

Promoting, distributing, and pricing products are all classified as which type of function?

• accounting
• human resources
• marketing
• management

Which business function involves developing a process for reporting, investigating and resolving employee complaints?

• accounting
• human resources
• marketing
• management

You buy a ruler from Wal-Mart for $2.50. Is this a good or service?

• Good
• Service

You pay $500.00 to have your car repaired. Is this a good or service?

• Good
• Service

You pay an account $150 to file your taxes. Is this a good or service?

• Good
• Service