Unit 1-3 Exam

A nonprofit service cooperative that accepts deposits ,makes loans, and provides other financial services

• I. credit union
• A. limited life
• B. general partnership
• C. common stock
• D. preferred stock

A form of corporate ownership giving one vote per share for stockholders

• C. common stock
• A. limited life
• B. general partnership
• D. preferred stock
• E. horizontal merger

A form of stock without vote, in which stockholders get their investments back before common stockholders do

• D. preferred stock
• A. limited life
• B. general partnership
• C. common stock
• E. horizontal merger

Organization that works for its members' interests concerning pay, working hours, health coverage, benefits, and other job related matters

• J. labor union
• A. limited life
• B. general partnership
• C. common stock
• D. preferred stock

All partners are equally responsible for management and debts.

• B. general partnership
• A. limited life
• C. common stock
• D. preferred stock
• E. horizontal merger

Lender of investment funds to a start up business in exchange for partial ownership of the business

• H. venture capitalist
• A. limited life
• B. general partnership
• C. common stock
• D. preferred stock

Which of the following is an advantage of sole proprietorship?

• A. There are almost no requirements to start up a sole proprietorship.
• B. The owner makes all the decisions.
• C. The owner keeps all the profits.
• D. All of the above statements are true.

On a certain day, a restaurant supplied 85 sandwiches. Customers bought 50 sandwiches. What was the result for the restaurant?

• A.Shortage
• B.Equilibrium price
• C.Equilibrium quantity
• D.Surplus

Which is an example of scarcity?

• a fan goes to a concert because there are enough tickets for everyone.
• a fan cannot go to a concert because he has to do homework instead.
• a fan cannot go to a concert because there are not enough tickets.
• a fan goes to a concert instead of doing homework.

A business’s net income is defined as ______ .

• A. total sales before expenses
• B. total income after expenses
• C. total dividends paid to investors
• D. total expenses before sales_______