Business Decisions and Economic Fundamentals Assessment

Which of the following best describes the three main factors of production according to traditional economic theory?

• Land, labor, and entrepreneurship

• Natural resources, human resources, and capital resources

• Money, markets, and management

• Raw materials, workers, and technology

What distinguishes a sole proprietorship from other business structures?

• It requires multiple owners

• It is owned and operated by one person

• It must be registered with the SEC

• It can only operate in certain industries

Which resource category would a factory building fall under?

• Natural resource

• Human resource

• Capital resource

• Entrepreneurial resources

In terms of sustainability, which statement is most accurate?

• It only applies to large corporations

• It means using resources at the same rate they can be renewed

• It reduces business profits

• It only concerns natural resources

What type of business structure would be most appropriate for two lawyers starting a practice together?

• Corporation

• Partnership

• Sole proprietorship

• Franchise

How do corporations typically raise capital?

• Through personal loans only

• By selling shares of stock

• Through government grants only

• By borrowing from partners

What is an example of a human resource in a business context?

• Solar panels

• Office building

• Factory worker

• Natural gas

Which factor of production represents man-made resources used in production?

• Natural resources

• Human resources

• Capital resources

• Environmental resources

Which external factor directly affects business decisions about what to produce?

• Employee schedules

• Demand for product

• Office location

• Company logo

A business structure helps you organize your business

• True

• False