Unit 7 Test Review: Intro to Economics

A company wants to computerize its accounting system. It issues stocks to raise additional funds.

• Sole Proprietorship

• Partnership

• Corporation

2. Mario and his brother Luigi started a plumbing company together. They split the profits and the expenses.

• Sole Proprietorship

• Partnership

• Corporation

3. Mary opened a dance studio. She receives all the profits from her students’ lessons.

• Sole Proprietorship

• Partnership

• Corporation

Mr. Lewis pays taxes on dividends for stocks he owns in a manufacturing company. The company also pays taxes on its income before distributing it to stockholders.

• Sole Proprietorship

• Partnership

• Corporation

Dan, Tony, and Mac own a pizza parlor. They rotate hours and days off.

• Sole Proprietorship

• Partnership

• Corporation

Mr. Wells owns a card shop. Because baseball cards have declined in popularity his business is struggling. He decides he has to sell his house to pay off his business debts.

• Sole Proprietorship

• Partnership

• Corporation

8. A person who takes a risk to produce goods and services in search of a profit is an entrepreneur. In which kind of business structure may entrepreneurs establish a business?

• Partnerships and Corporations

• Sole Proprietorships, Partnerships, and Corporations

• Only Corporations

• Sole Proprietorships and Corporations

9. What type of business is described in the diagram below?

• Sole Proprietorships

• Partnerships

• Corporation

What are the three basic questions that every economic system must answer?

• What's produced?

• How's it produced?

• Who sells it?

• Who consumes it?

What are the three economic systems?

• Market

• Traditional

• Command

• Democratic