ECON Unit 3 Quiz

What is a significant advantage of forming a Limited Liability Company (LLC)? 

• LLCs have a simpler tax structure. 

• LLCs provide owners with limited liability protection. 

• LLCs require fewer regulations and paperwork. 

•  LLCs can be owned by a single individual only.

Which best describes "A business owned and operated by one person"

• Cooperative

• Sole Proprietorship

• LLC

• Franchise

Which best describes: a business model where individuals can operate a branch of a larger company.

• Franchise

• Partnership

• Cooperative

• Sole Proprietorship

Which best describes a business with a Focus on community and member needs rather than profit maximization.

• Corporation

• Cooperative

• Sole Proprietorship

• Franchise

What is a Limited Liability Company (LLC)?

• A business structure where the owners have unlimited liability

• A business structure where the owners have limited liability

• A business owned by a single individual

• A business where profits are distributed according to shares

What is the primary goal of government involvement in the economy? 

• To reduce taxes  

• To promote economic growth  

• To increase unemployment  

• To limit free market principles  

How do copyrights and contracts contribute to economic growth?

• They limit creativity and innovation  

• They protect private and intellectual property, fostering economic growth  

• They create barriers to entry for new businesses  

• They reduce the need for government intervention  

What term is used to describe "The total value of all goods and services produced within a country"

• Gross Domestic Product (GDP)

• Newtons

• Supply and Demand

• You should pick GDP

 What is one method governments use to achieve economic growth? 

• Reducing the number of jobs available  
  

• Limiting access to education 

• Increasing regulations on businesses  

• Striving for full employment

What is the primary characteristic of business cycles?

• They are solely influenced by government policies

• They only occur during recessions

• They consist of periods of economic expansion and contraction

• They are always predictable