Economics Unit 2 Review

1. Sole proprietors have ____, meaning they are financially responsible for all problems related to their businesses.

• financial capital
• unlimited liability
• stock
• limited liability

2. A ____ is a business that has many of the rights and responsibilities of an individual.

• corporation
• partnership
• sole proprietorship
• closed shop

3. Ownership shares of a corporation are called

• charters.
• bonds.
• bills.
• stocks.

4. Stockholders elect a ____ to act on their behalf.

• manager
• president
• board of directors
• chief executive officer

5. ____ means that stockholders are not responsible for the debts of the corporation.

• Unlimited liability
• Double taxation
• Limited liability
• Sole proprietorship

6. ____ is when union and company officials meet to discuss the terms of the workers’ new contract.

• Mediation
• Collective bargaining
• Arbitration
• Closed shop

7. ____ is when a third party listens to both sides and then decides how to settle the disagreement.

• Mediation
• Closed shop
• Arbitration
• Collective bargaining

8. In a ____ shop, workers do not have to join a union, but can choose to do so.

• modified union
• closed
• union
• free

9. Businesses are required to treat all workers fairly and without _________.

• arbitration.
• transparency.
• mediation.
• discrimination.

10. A ____ is a business owned and operated by a single person.

• corporation
• partnership
• sole proprietorship
• cooperative