Understanding Basic Business Concepts

What type of business is owned and run by one person?

• Corporation

• Sole proprietorship

• Partnership

• Cooperative

What happens to the price of a product when the demand increases but the supply remains the same?

• The price decreases

• The price stays the same

• The price increases

• The product becomes unavailable

• $30

• $70

• $100

• $170

Which of the following is a marketing strategy?

• Increasing production costs

• Offering discounts

• Reducing employee wages

• Limiting product availability

What is one of the basic rights of consumers?

• The right to a refund

• The right to set prices

• The right to produce goods

• The right to avoid taxes

What does the term "revenue" mean in business?

• The total cost of production

• The total income from sales

• The total profit after expenses

• The total number of products sold

Which type of business is owned by two or more people who share profits and responsibilities?

• Corporation

• Sole proprietorship

• Partnership

• Franchise

• $10

• $15

• $25

• $40

What is the effect of a surplus in supply on the price of a product?

• The price increases

• The price decreases

• The price stays the same

• The product becomes more popular

Which of the following is an example of a cooperative?

• A local bakery owned by one person

• A group of farmers sharing resources

• A multinational corporation

• A family-owned restaurant