Principles Unit 2 Types of Businesses Review

Which of the following is NOT classified as a type of business according to the work activities performed?

• Producers

• Processors

• Manufacturers

• Consumers

Producers develop products for distribution from raw goods. Which of the following is an example of a producer?

• A) Farming

• B) Juice factories

• C) Retailers

• D) Oil refineries

Processors change raw goods into a more finished form. Examples of processors include cotton mills, oil refineries, textile mills, and _________.

• food processors

• bookstores

• car dealerships

• movie theaters

Manufacturers change raw or processed goods into finished goods. Which of the following is NOT an example of a manufacturer?

• Juice factories

• Clothing factories

• Automobile factories

• Forestry

Intermediaries are referred to as the middleman.

• True

• False

Wholesalers buy finished goods from manufacturers in large quantities and sell them to businesses in smaller quantities.

• True

• False

Retailers buy finished goods from ________ or wholesalers.

• manufacturers

• customers

• retailers

• distributors

Which of the following is an example of a service firm?

• Beauty salons

• Salvation Army

• American Red Cross

• YMCA

Non-profit organizations operate on donations, volunteers, and philanthropists rather than _________

• income/profit

• government grants

• membership fees

• public votes

Which of the following is NOT an example of a non-profit organization?

• Salvation Army

• United Way of America

• Beauty salons

• American Red Cross