Market Structures Unit Test Review

1. Which type of business organization has one person as the owner?

• Sole Proprietorship
• Partnership
• Corporation

2. Which type of business organization limits the liability of the owners to just the company level?

• Sole Proprietorship
• Partnership
• Corporation

3. What is it called when revenue is greater than expenses?

• Deficit
• Surplus
• Profit
• Loss

5. This is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

• Capital
• Stocks
• Stock Market

6. This is a place for "safe" investments. Typically for "protecting" your wealth, not growing wealth.

• Capital
• Stock Markets
• Banks

7. This represents the general well being of the business community in a country.

• Capital
• Stock Markets
• Economy

8. This is where investors go to purchase stocks

• Capital
• Stock Markets
• Banks

9. This is needed to purchase stocks by individuals

• Capital
• Stock Markets
• Banks

10. How would a company grow by using financial capital?

• By gaining a larger share of a particular market.
• By controlling the production process and limiting expenses
• By reinvesting profits back into the company
• By having revenue streams in unrelated markets to serve more customers

11. How would a company grow by using a conglomerate merger?

• By gaining a larger share of a particular market.
• By controlling the production process and limiting expenses
• By reinvesting profits back into the company
• By having revenue streams in unrelated markets to serve more customers