21 Economic System and Business Ownership Quiz

What was America's main industry during the early development of the country? What major era in history moved America in a new direction of economic development?

• agriculture

  farming

• factories

• services

What are other names used to describe free enterprise?

• Profit System

• Capitalism

• Market

  Economy

• All the above

The six basic factors on which the US free enterprise system is based are:

Private ownership, control of productive resources, free market, profit motive, supply and demand, competition, and limited government involvement.

• False

• True

Name three things a company might do to become more profitable in a free market.

• reorganize the company

• lay off workers

• install new technology

• cheat and steal

What are the disadvantages of a monopoly?

• open competition

• prevents competition

• limits the

  Free Market

• charges Fair

  prices

Which is NOT a legal form of business ownership.

• Sole Proprietorship

• Partnership

• Human Trafficking

• Corporation

Order from simple, easy to start Business Structure to most complex.

• LLC (Corporation)

• Sole

  Proprietorship

• C Corporation

• Partnership

What is the promotion, selling and distribution of goods and services?

• Supply

• Marketing

• Demand

Advantages of a Partnership include having a Board of Directors and Vertical Structure.

• false

• true

If a Stockholder invests $10,000 in a Corporation, he is liable for ALL liabilities of the corporation.

• False

• True