Business Basics Quiz

The main goal of most businesses is to:

• Provide free services

• Increase competition

• Make a profit

• Avoid paying taxes

Which of the following is a good definition of “economics”?

• Study of money only

• Study of human behavior in groups

• Study of how people use limited resources to satisfy unlimited wants

• Study of history

Which of these is NOT a factor of production?

• Land

• Labor

• Capital

• Competition

The difference between revenues and expenses is called:

• Assets

• Liabilities

• Profit

• Equity

Which is an example of a service business?

• Clothing manufacturer

• Furniture store

• Hair salon

• Farm

Which business structure gives the owner complete control but unlimited liability?

• Sole proprietorship

• Partnership

• Corporation

• Franchise

Two or more people owning and running a business together is a:

• Corporation

• Partnership

• Franchise

• Cooperative

A business owned by shareholders is a:

• Sole proprietorship

• Partnership

• Corporation

• Franchise

What is a disadvantage of corporations?

• Limited liability

• Double taxation

• Easier to raise capital

• Unlimited life span

A franchise is:

• Government-owned

• A business where an individual buys the rights to operate under a larger company’s brand

• A type of partnership

• Always non-profit