Intro to Bus: Chapter 5 Test Review

What is a contingent worker?

• An employee who works full-time with benefits

• A person who has no implicit or explicit contract for long-term employment

• A business owner

• A government official

Which of the following best describes an intermediary in business?

• A person who manufactures goods

• A person or business that acts as a link between parties to facilitate transactions

• A customer

• A government agency

What is a service business?

• A business that sells physical products

• A business that provides intangible products to customers

• A business that only hires family members

• A business that operates online only

How many basic business activities must all businesses complete?

• Four

• Six

• Eight

• Ten

What percentage of businesses employ 1-4 employees?

• 10%

• 25%

• 80%

• 56%

Which of the following is an advantage of being a contingent worker?

• Guaranteed long-term employment

• Flexible work schedule

• High job security

• Full employee benefits

Which business structure is the most complex?

• Proprietorship

• Partnership

• Corporation

• Franchise

Which form of business ownership has the most personal liability?

• Proprietorship

• Partnership

• Corporation

• Franchise

Which form of business ownership is subject to double taxation?

• Proprietorship

• Partnership

• Corporation

• Franchise

What is a franchise?

• A business owned by one person

• A business owned by two or more people

• A business that sells the right to use its name and sell its products

• A government agency