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WorksheetsEconomics: Chapter 8 Review
Total questions: 30
Worksheet time: 15mins
Name
Class
Date
1.
An entrepreneur goes into business to earn a profit while avoiding risk.
a)
True
b)
False
2.
Though entrepreneurs may earn profit in the short run, it is profit in the long run that attracts competitors and substitutes.
a)
True
b)
False
3.
Most entrepreneurs succeed by selling their good ideas to others.
a)
True
b)
False
4.
If a corporation fails, stockholders could lose the amount they paid for the stock and could be held liable for the debts of the business.
a)
True
b)
False
5.
Most sole proprietorships have many employees, creating management difficulties.
a)
True
b)
False
6.
Each dollar of corporate earnings gets taxed twice.
a)
True
b)
False
7.
The most influential & complex form of business organization is the corporation.
a)
True
b)
False
8.
Entrepreneurs must introduce a new product to be successful.
a)
True
b)
False
9.
The board of directors of a corporation is responsible for day-to-day decisions, such as hiring workers and setting production schedules.
a)
True
b)
False
10.
A big advantage of sole proprietorships & partnerships is that business earnings are taxed only once- as income to the business owner.
a)
True
b)
False
11.
The process of turning an invention into a marketable product is called
a)
speculation
b)
entrepreneurship
c)
intrapreneurship
d)
innovation
12.
All entrepreneurs are
a)
lucky
b)
profit-seekers
c)
wealthy
d)
college-education
13.
Of the 30 million for-profit businesses in the United States, most
a)
employ more than 25 people.
b)
consist of one self-employed person.
c)
employ more than 100 people.
d)
will grow into larger businesses.
14.
Who owns a corporation?
a)
its managers
b)
its board of directors
c)
its stockholders
d)
its partners
15.
An individual or company that specializes in financing start-up firms is a(n)
a)
entrepreneur
b)
chief executive officer
c)
venture capitalist
d)
stockholder
16.
All of the following are advantages of sole proprietorships except
a)
pay lower taxes
b)
limited life
c)
few government regulations
d)
easy to start
17.
A charter is legal authorization to form
a)
any type of business
b)
a corporation
c)
a partnerhsip
d)
a sole proprietorship
18.
A corporation
a)
cannot be found guilty of a crime
b)
has an unlimited life
c)
is usually owned by one person
d)
cannot lose money because it has stockholders.
19.
A partnership
a)
must share business profits with its stockholders.
b)
protects partners from personal liability.
c)
has unlimited life, independent of the partners.
d)
ends when one partner dies or leaves the business.
20.
All of the following are true about corporations except
a)
they have limited liability
b)
their stock must be resold after the death of its major shareholder.
c)
they have unlimited life.
d)
they are more regulated than other forms of business.
21.
Who has the most direct control over publicly traded corporations?
a)
the owners
b)
the managers
c)
labor unions
d)
government
22.
A consumer cooperative seeks to
a)
market the output of its members.
b)
reduce costs for its members.
c)
do charitable or humanitarian activities.
d)
buy supplies and equipment for its members.
23.
The Red Cross, National Education Association, and National Museum of Natural History are all examples of
a)
S corporations
b)
consumer cooperatives
c)
not-for-profit organizations
d)
producer cooperatives
24.
A(n) __ comes up with an idea, turns that idea into a marketable product, accepts the risk of success or failure, and claims any resulting profit or loss.
a)
entrepreneur
b)
proprietor
c)
venture capitalist
d)
stockholder
25.
An entrepreneur must obtain __, or money, to start or expand the business.
a)
financial capital
b)
stock
c)
patents
d)
equipment
26.
__ is the process of turning an invention into a marketable product.
a)
innovation
b)
liability
c)
cooperation
d)
interning
27.
The simplest form of business organization is the __, which is a firm owned and run by a single individual.
a)
sole proprietorship
b)
partnership
c)
corporation
d)
S corporation
28.
__ is the legal obligation to pay any debts of the business.
a)
liability
b)
cooperative
c)
innovation
d)
entrepreneurship
29.
A(n) __ is a legal entity with an existence that is distinct from the people who organize, own and run it.
a)
proprietorship
b)
corporation
c)
partnership
d)
venture capital
30.
A corporation is established through ___, a written application to a state seeking permission to form a corporation.
a)
articles of incorporation
b)
partnership agreement
c)
charter
d)
contract of business
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