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WorksheetsBE Ch 6 Reivew
Total questions: 20
Worksheet time: 10mins
There are three main types of business organizations: sole proprietorship, partnerships, and corporations.
TRUE
FALSE
About half of all businesses in the United States are sole proprietorship.
TRUE
FALSE
Income from a corporation is taxed twice.
TRUE
FALSE
A major disadvantage of owning a sole proprietorship is that the owner has limited liability.
TRUE
FALSE
An advantage of owning a partnership is that banks are more often willing to lend money to a partnership rather than a sole proprietorship.
TRUE
FALSE
The most common type of business in the United States are...
corporations
sole proprietorships
partnerships
mom and pop stores
A dividend is...
The cost of a share of stock
A tax paid by the stockholder
The money made as a result of owning share of stock
The money lost on a share of stock
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 are often more willing to lend money to a partnership than a sole proprietorship
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 attorney
hire employees
start bank accounts
One disadvantage that corporations face is...
competition
environmental laws
the cost of raw materials
double taxation
Non-profit organizations
focus on providing services rather than making a profit
outnumber sole proprietors in the US
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 Walmart superstore
Processed goods include all of the following except...
organic vegetables
white sugar
steel
gasoline
Retailers get their goods from...
consumers
dealers
wholesalers
partnerships
The process of planning, pricing, promoting, selling, and distributing ideas, goods, and services is known as...
financing
procurment
accounting
marketing
Companies benefit when all functional areas
operate independently
monitor each other
work together
belong to a union
The process of achieving company goals by planning, organizing, controlling, and evaluating the effective use of resources is called,
production
management
marketing
procurement
Consumers usually deal directly with
manufacturers
retailers
wholesalers
distributors
Cooperatives were formed to...
save money on the purchase of certain goods and services
sell more products
promote each other
help people cooperate
