Intro to Business Chapter

The straight line overlaid on the business cycle represents the economy's full employment level.

• False

• True

Which of the following goal(s) are strong at the peak?

• equity

• full employment

• growth

• price stability

Which of the following goal(s) is mostly likely to be in trouble at the peak?

• equity

• full employment

• growth

• price stability

Which of the following goal(s) is mostly likely to be in trouble at the trough?

• equity

• full employment

• growth

• price stability

A(n) _________ is someone who sets up a new business to make a profit.

• monopoly

• corporation

• entrepreneur

• anarchist

What is the primary purpose of a business?

• To provide goods and services

• To employ people

• To pay taxes

• To compete with other businesses

Which of the following is a characteristic of a sole proprietorship?

• Limited liability

• Owned by shareholders

• Single owner

• Double taxation

What is a key advantage of a corporation?

• Unlimited liability

• Ease of formation

• Limited liability

• Single taxation

Which economic system is characterized by private ownership and free markets?

• Communism

• Socialism

• Capitalism

• Feudalism

What is the role of an entrepreneur in a business?

• To manage day-to-day operations

• To provide capital

• To take risks and innovate

• To regulate the industry