QTKD part 2

Leanne owns a nursery. The trucks, handcarts, and forklift she purchased for the business are called ________ investments.

• intangible resources

• natural resources

• current asset

• capital

Thomas Malthus believed that people in most countries would never be able to achieve high standards of living unless the problems of overpopulation were addressed.

• False

• True

The sixth and final step in the accounting cycle involves:

• analyzing major accounting statements to evaluate the financial condition of the firm.

• preparing the income statement.

• auditing the books to ensure that they were prepared according to generally accepted accounting principles.

• performing a trial balance to verify that the accounting statements are internally consistent.

Which of the following policies would tend to foster entrepreneurship?

• Develop policies to reduce corruption between individuals.

• Promote more regulations to protect the environment.

• Minimize taxes and regulations.

• Encourage public ownership of businesses.

The tiny nation of Tinian is extremely efficient in the mining of tin. However, its climate and terrain makes it difficult to produce corn. According to the theory of comparative advantage, Tinian should:

• concentrate its production on tin and buy corn from an efficient producer.

• import the resources needed to produce corn.

• produce both tin and corn in order to remain self-sufficient.

Which of the following is an advantage of a line organization in a large business?

• Each worker has several supervisors.

• Responsibility and authority are clearly defined.

• It does not require specialists to advise people along the line.

• It is very flexible.

Which of the following statements about productivity in the service sector of the U.S. economy is most accurate?

• Productivity in the service sector is easier to measure than productivity in agriculture.

• Measures of productivity in the service sector do a poor job of taking quality improvements into account.

• Productivity in the service sector has increased much more rapidly than productivity in the manufacturing sector.

• Improving productivity in the service sector is much less important than improving productivity in the manufacturing sector, because the service sector does not really produce anything.

A ______ is two firms combining to form one company.

• tenancy in common

• merger

• joint tenancy

• leveraged buyout

The ______ is the most common form of business ownership.

• corporation

• partnership

• joint venture

• sole proprietorship

In a _________ organization, specialists from different parts of the organization are brought together on a temporary basis to work on specific projects.

• matrix

• line

• line-and-staff

• centralized