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WorksheetsEcon Ch. 3 - Business Organizations
Total questions: 45
Worksheet time: 23mins
Name
Class
Date
1.
What is the most common form of business organization in the United States?
a)
sole proprietorship
b)
corporation
c)
partnership
d)
limited partnership
2.
What is the main strength of the corporate form of business organization?
a)
ease of raising financial capital
b)
ease of management
c)
ease of establishment
d)
freedom from business income taxes
3.
A government document granting permission to create a corporation is called a
a)
dividend
b)
charter
c)
bond
d)
proxy.
4.
Basic ownership of a corporation, including voting rights, takes the form of a
a)
Bonds
b)
Common stock.
c)
Preferred stoc
d)
partnerships
5.
All of the following are strengths of the partnership form of business organization EXCEPT
a)
Limited life
b)
Ease of establishment
c)
Lack of special taxes
d)
Ease of managment
6.
What is an example of a state government offering incentives to bring a new industry to their state?
a)
Special deals offered on hotels for tourists
b)
Michigan’s Pure Michigan AD’s
c)
Michigan offering tax breaks to the movie industry to come to Michigan
d)
Ohio putting Cedar Point commercials throughout the Midwest
7.
The government creating a business that competes with other privately owned businesses to sell a good or service is an example of a(an)
a)
Indirect role of government.
b)
Government diversification
c)
Direct role of government
d)
Laissez-Faire economy
8.
A corporation that has at least four businesses, each making unrelated products, none of which is responsible for a majority of its sales, is called a
a)
Vertical merger
b)
Multinational
c)
Conglomerate
d)
Horizontal corporation
9.
Illitch Holdings owns the Tigers, Red Wings, Little Caesars, and Olympia Entertainment. These are four unrelated businesses making Illitch Holdings a
a)
multinational
b)
vertical merger
c)
conglomerate
d)
horizontal corporation
10.
Horizontal mergers involve
a)
Two or more firms in different countries
b)
wo or more firms involved in different steps of manufacturing or marketing
c)
Two or more firms that produce different products
d)
Two or more firms that produce the same type of product
11.
Which of the following statements is true?
a)
A multinational is often a conglomerate
b)
All multinationals are conglomerates
c)
All conglomerates are multinationals
d)
A conglomerate is another term for multinational
12.
In 2005, Nike bought out Converse so that they could sell Converse shoes, and eliminate a rival from the athletics ware industry. This is an example of a
a)
a competitive merger
b)
a vertical merger
c)
a conglomerate merger
d)
a horizontal merger
13.
Which of the following is a reason for multinationals to setup in another country?
a)
Host countries will continue to offer incentives because the multinational creates jobs and tax revenue
b)
To receive tax breaks from the host country
c)
To have cheaper labor in the host country
d)
All of the above
14.
Which are important for their ability to move resources, products, and financial capital across national boundaries with relative ease?
a)
mergers
b)
conglomerates
c)
corporations
d)
multinationals
15.
What is a major reason for conglomerate mergers?
a)
unlimited life
b)
conglomeration
c)
multinationals
d)
diversification
16.
Which of the following is an example of a service cooperative?
a)
Greenville Teachers' Credit Union
b)
Mason Chamber of Commerce
c)
Association of Manufacturing Workers
d)
Better Business Bureau
17.
Which of the following best illustrates the indirect role of government?
a)
regulation of public utilities
b)
a state park
c)
a city's fire department
d)
the Tennessee Valley Authority
18.
Which of the following has trouble attracting top talent?
a)
Sole proprietorship
b)
None, they all attract top talent
c)
Partnership
d)
Conglomerate
19.
Which of the following is most likely NOT a nonprofit organization?
a)
Lawn and Order Lawn Grooming
b)
church
c)
neighborhood association
d)
public school
20.
Why are government controls needed on public utilities?
a)
Public utilities provide important public services
b)
Public utilities are investor- or municipal-owned
c)
Public utilities usually have no competition
d)
Public utilities are responsible for water and electric services.
21.
Which type of organization works to improve working conditions, skill levels, and public perception of the profession?
a)
Collective bargaining
b)
Labor unions
c)
Professional associations
d)
Cooperative
22.
In a general partnership,
a)
partners are only liable for the business's debt up to the amount of their investment.
b)
partners must pay specific business taxes
c)
partners usually draw up legal papers called articles of partnership
d)
the business continues even if one partner dies
23.
An advantage of a corporation is that
a)
the business is subject to little government regulation
b)
owners have direct and immediate control over daily management of the business.
c)
owners have limited liability for debt
d)
owners pay fewer taxes than owners of other forms of business
24.
All of the following are typical Chamber of Commerce activities except
a)
Educational programs
b)
Neighborhood clean-up
c)
Demonstrating against new housing development
d)
Lobbying for favorable business legislation
25.
Raises financial capital easily.
a)
Sole proprietorship
b)
Corporation
c)
Partnership
d)
Conglomerate
26.
Jointly owned by two or more persons
a)
Sole proprietorship
b)
Corporation
c)
Conglomerate
d)
Partnership
27.
Easiest business to start.
a)
Corporation
b)
Partnership
c)
Conglomerate
d)
Sole proprietorship
28.
Separate legal entity with all the rights of an individual.
a)
Sole proprietorship
b)
Corporation
c)
Partnership
d)
Conglomerate
29.
Can buy and sell property.
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Conglomerate
30.
Firm of at least four businesses, each making unrelated products, and none responsible for a majority of the sales.
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Conglomerate
31.
a business owned and run by one person
a)
sole proprietorship
b)
limited partnership
c)
non profit organization
d)
corporation
32.
business organization in which at least one partner is not active in the daily running of the business
a)
professional organization
b)
sole proprietorship
c)
limited partnership
d)
vertical partnership
33.
a court-granted permission to an individual or business to cease or delay debt payments
a)
charter
b)
merger
c)
bankruptcy
d)
depreciation
34.
business organization recognized by law as a separate legal entity having all the rights of an individual
a)
limited partnership
b)
vertical partnership
c)
corporation
d)
labor union
35.
a firm ceases to exist when the owner dies, quits, or sells the business
a)
limited partnership
b)
limited life
c)
bankruptcy
d)
depreciation
36.
A combination of two or more businesses to form a single firm
a)
corporation
b)
conglomerate
c)
merger
d)
cooperative
37.
Business combination of firms in different steps of manufacturing or marketing
a)
vertical merger
b)
horizontal merger
c)
cooperative merger
d)
labor union
38.
Determined by subtracting expenses, including taxes, from revenue
a)
fixed income
b)
principle
c)
net income
d)
depreciation
39.
A corporation that has operations in a number of different countries
a)
professional association
b)
multinational
c)
labor union
d)
international
40.
A non-cash charge a firm takes for general wear and tear on its capital goods
a)
revenue
b)
charter
c)
depreciation
d)
fixed interest rate
41.
Voluntary association of people formed to carry on some kind of economic activity that will benefit its members
a)
labor union
b)
cooperative
c)
professional association
d)
limited partnership
42.
Group of people in a specialized occupation that works to improve the working conditions, skill levels, and public perceptions of the profession
a)
nonprofit organization
b)
professional association
c)
conglomerate
d)
unlimited partnership
43.
Negotiations between representatives of labor and management
a)
voluntary exchange
b)
government regulation
c)
collective bargaining
d)
contracting
44.
Economic institution that works in a business like way but does not seek financial gain
a)
charter
b)
labor union
c)
nonprofit organization
d)
venture capitalist
45.
Organization of workers formed to represent its members’ interests in various employment matters
a)
professional association
b)
cooperative
c)
labor union
d)
corporate representatives
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