Semester 2 Exam Review- Principles of Business Management

The most common form of business organization is the

• corporation

• cooperative

• partnership

• proprietorship

In which type of partnership is the liability of a partner limited to the amount of the partner's investment?

• restricted partnership

• unrestricted partnership

• limited partnership

• unlimited partnership

An official document giving power to run a corporation is a

• proxy

• charter

• partnership agreement

• business plan

An agreement among two or more businesses to work together to provide a good or service is called a

• limited liability partnership

• joint venture

• cooperative

• limited liability corporation

A written agreement between two or more people identifying how they will add capital, labor or other assets and divide any profits or share any losses in their business is called a

• partnership agreement

• charter

• business plan

• certificate of incorporation

A general term that refers to the movement of information from one location to another electronically is

• local area network

• a wide area network

• telecommunications

• an optical network

Original facts and figures that businesses generate.

• data

• information systems

• knowledge workers

• VoIP

The primary reason businesses keep financial records is to

• comply with federal laws

• determine if they have made a profit or loss

• keep track of debts owed

• make monthly payments on time

Movement of cash into and out of a business is known as

• cash flow

• operating expenses

• profit sharing

• cost of goods sold

A business that is planning to introduce a new product will need a

• cash budget

• start-up budget

• sales budget

• capital budget