Economics Chapter 8

What term is defined as an enterprise that produces goods or services, usually to make a profit?

• business organization

• stock

• unlimited liability

• vertical merger

What does the term limited life mean?

What do many people consider to be the chief advantage of sole proprietorship?

What is a business owned and managed by a single person called?

• conglomerate

• general partnership

• limited partnership

• sole proprietorship

What is the term for a business that is co-owned by two or more people who agree on how responsibilities, profits, and losses will be divided?

• partnership

• general partnership

• limited partnership

• limited liability partnership

What is the term for a business in which none of the co-owners is responsible for the debts or mistakes of the others?

• partnership

• general partnership

• limited partnership

• limited liability partnership

Which of the following is an advantage of partnership but not of sole proprietorship?

• Few regulations

• Easy to open and close

• Specialization of skills

• Limited life

Which of the following is a disadvantage of partnership but not of sole proprietorship?

• Unlimited liability

• Potential for conflict

• Limited life

• Much stricter regulations

What is the name for an individual who owns a share of a corporation and is entitled to part of its profits?

• Director

• Officer

• President

• Stockholder

Which of the following is a corporation that issues stock that can be freely bought and sold?

• Nonprofit corporation

• Multinational corporation

• Private corporation

• Public corporation