Free Printable IBT Chapter 6 - Business Ownership and Operations

Worksheets

IBT Chapter 6 - Business Ownership and Operations

Total questions: 27

Worksheet time: 14mins

Name

Class

Date

Unlimited liability means

the owner is responsible for only accidents that occur on business property.

the owner is responsible for the company’s debts.

the owner must have insurance.

the owner shares the liability with the company’s stockholders.

An advantage of a partnership is

that the partners make decisions together

that the banks often more willing to lend money to a partnership than to a sole proprietship

that the partners often bring different skills and talents to the business

all of the above

In order to start a corporation, the first thing one must do is

obtain a corporate charter from the state government

hire an accountant and an attorney

hire employees

start bank accounts

One disadvantage that corporations face is

competition

environmental laws

the cost of raw materials

double taxation

Nonprofit organizations

focus on providing services rather than making a profit

outnumber sole proprietorships in the United States

must still pay taxes

do not register with the government

An example of a franchise is

a McDonald's restaurant

a "mom and pop" grocery store

a Sears department store

a Wal-Mart superstore

Processed goods include all the following except

organic vegetables

white sugar

steel

gasoline

Retailers get their goods from

consumers

dealers

wholesales

partnership

The process of planning, pricing, promoting, selling, and distributing ideas, goods, and services is known as

financing

procurement

accounting

marketing

10.

Companies benefit when all functional areas

operate independently

monitor each other

work together

belong to a union

11.

The process of achieving company goals by planning, organizing, directing, controlling, and evaluating the effective use of the resources is called

production

management

marketing

procurement

12.

Consumers usually deal directly with

manufacturers

retailers

wholesalers

distributors

13.

Cooperatives were formed to

save money on the purchase of certain goods and services

sell more products

promote each other

help people cooperate

14.

The most common type of business in the United States are

corporations.

sole proprietorships.

partnerships.

“mom and pop” stores.

15.

A dividend is

the cost of a share of stock.

a tax paid by stockholders.

the money made as a result of owning a share of stock.

the money lost on a share of stock.

16.

There are three (3) main types of business organizations: sole proprietorships, partnerships, and franchises

True

False

17.

About half of all businesses in the United States are sole proprietorships.

True

False

18.

Income from a corporation is taxed twice.

True

False

19.

A major disadvantage of owning a sole proprietorship is that the owner has limited liability.

True

False

20.

An advantage of owning a partnership is that banks are more often more willing to lend money to partnerships than to sole proprietorships.

True

False

21.

The business or art of money management

Accounting

Finance

22.

The owner is responsible for the company’s debts

Limited Liability

Unlimited Liability

23.

A type of business that focuses on providing a service, not on making a profit

Nonprofit organization

Wholesaler

24.

An organization that is owned and operated by its members

Corporation

cooperative

25.

The process that involves getting consumers to buy a product or service

Marketing

Accounting

26.

A contractual agreement to use the name and sell the products or services of a company in a designated geographic area

Cooperative

franchise

27.

Also known as distributors

Retailer

wholesaler

Reset

IBT Chapter 6 - Business Ownership and Operations

Total questions: 27

Worksheet time: 14mins

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