Quiz Practice Week 1

Which of the following is NOT a typical asset a business invests in?

• Land

• Buildings

• Equipment

• Personal gifts

Which market does a business raise money in?

• Real estate market

• Capital markets

• Stock market

• Commodity market

What is the primary role of finance within service organizations?

• To develop new products

• To plan for, acquire, and utilize resources

• To manage human resources

• To create marketing campaigns

Which business structure involves two or more people sharing ownership?

• Corporation

• Partnership

• Proprietorship

• Franchise

What is one of the advantages of proprietorships regarding taxes?

• High corporate income taxes

• No corporate income taxes

• Double taxation

• Taxed as a corporation

Which of the following is an advantage of a corporation?

• Unlimited liability

• Limited life

• Easy transfer of ownership

• High cost of formation

Which of the following is true about the life of a corporation?

• It ends with the owner's death

• It is limited to 10 years

• It is unlimited

• It cannot be extended

How do investors become owners in investor-owned corporations?

• By purchasing bonds

• By purchasing shares of common stock

• By inheriting the company

• By being appointed by the board

How can not-for-profit corporations be roughly thought of in terms of ownership?

• Owned by shareholders

• Owned by a single individual

• Owned by the community

• Owned by the government

Which of the following is a responsibility of not-for-profit managers?

• Satisfying only the owners

• Satisfying all stakeholders

• Satisfying only the employees

• Satisfying only the suppliers