Business Organizations & Market Structures Test Review

One cost consideration made when purchasing personal property, such as a car would be —

• asset value of the property

• maintenance of the property

• time spent viewing the property

• potential co-owners of the property

Rachel has decided to open a retail store in her community. She would need to invest $150,000 to start selling her first products. Which risk management strategy would help her transfer her financial risk?

• Using her house as collateral

• Finding a location in a high traffic area

• Borrowing money from friends and family

• Obtaining insurance in case of damage or theft of her inventory

One government restriction to consider when proposing to build a new business includes —

• zoning laws

• investor taxes

• repayment of loans

• hiring subcontractors

In recent years some cities have passed ordinances to restrict the size of houses being built on city lots. These types of regulations have been enacted in order to —

• lower building costs for local construction companies

• ensure that new houses are available to inner city buyers

• protect the property owners already living in the neighborhood

• collect higher property taxes to build infrastructure for the neighborhood

Based on the information on the table, which economic condition is characteristic of all three nations?

• Low GDP per capita

• High levels of inflation

• Low inflationary levels

• High levels of unemployment

High levels of unemployment combined with high levels of inflation and a shrinking economy could indicate that the business cycle has entered into a period of —

• recession

• stagflation

• expansion

• investment

Economic growth would most likely result from —

• decreased trade

• increased productivity

• increased employment

• decreased sales of stock

The introduction of new manufacturing technologies generally affects economic growth by —

• creating safer work environments

• increasing the productivity of labor

• restricting growth because of the additional expense

• stopping production while workers learn the new technology

Which of the following best completes the diagram?

• Characteristics of Partnerships

• Characteristics of Free Enterprise

• Characteristics of Sole Proprietorships

• Characteristics of Corporations

Match each type of business organization with the correct description.

This is the easiest business to establish due to one owner controlling all aspects of the business.

• Corporations

• Sole Proprietorship

• Limited Partnership

• Limited Liability Partnership