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WorksheetsForms of Business, Roles of Gov't, and Market Structure
Total questions: 45
Worksheet time: 33mins
Which of the following best describes the term limited liability? If the business fails:
Personal possessions of the owner can be taken to pay any debts
The owner is personally liable for all the debts of the business
There is no limit on the amount the owner has to pay to settle debts
The owner only loses the amount invested in the business
Which legal structure would an individual wishing to start-up a small business choose because it is quick, easy and inexpensive to set up?
Sole proprietorship
Partnership
Privately Held Corporation
Corporation
Which of the following is a drawback for an entrepreneur setting up a business as a sole proprietorship?
Profit is shared
Financial accounts are kept private
Limited liability
Unlimited liability
The type of business ownership in which all business decisions are the responsibility of the owner.
A type of business ownership that allows its owners to avoid double taxation because the organization is not required to pay corporate taxes
Partnership
S Corporation
Limited Liability
Sole Proprietor
Which of the following is an example of a franchise?
McDonalds
Foot Locker
Macy's
Primark
A form of business ownership that is taxed like a partnership but enjoys the benefits of a limited liability like a corporation.
Limited Liability Company
Corporation
Partnership
Franchise
Recurring royalty fees as a percentage of sales or profits is a disadvantage of a _________________________.
Partnership
Franchise
Corporation
S Corporation
A disadvantage of a _____________are its restrictions on number and type of shareholders.
Franchise
Corporation
LLC
S Corporation
This type of business is generally only available to a group of professionals such as lawyers or accountants which is a disadvantage.
LLC
Partnership
Co-Operative
Sole Propritorship
LLC represents Limited Liability Company
True
False
A market that has a few sellers of basically the same goods.
Perfect Competition
Pure Monopoly
Monopolistic Competition
Oligopoly
Which type of market structures has many producers (companies) and sell similar but different products from each other? These companies have a little control over the price and there are relatively low barriers to entry.
perfect competition
monopolistic competition
oligopoly
monopoly
Which of the following is NOT a Market Structure?
Perfect Competition
Oligopoly
Monopoly
Corporation
Which type of market structure is where a single firm controls the entire market.
Oligopoly
Monopolistic
Monopoly
Perfect Competition
A _________________ is an economic system in which economic decisions and the pricing of goods and services are guided by the interactions of a country's individual citizens and businesses.
Free Enterprise Economy
Free Economy
Monopolistic Economy
Market Economy
Which of the following is main function of government in a market economy? Check all that apply
Equity
Economic Growth or Stability
Efficiency
Infrastructure
The term________________refers to an enterprise which does not only make use of traditional methods of distribution, but also makes use of internet technology in order to easily expand its market and make the product or service more accessible.
E-Business
Hybbrid Business
E-Commerce
Which of the following is true of the Federal Trade Commission?
A. Demotes fair competition
Prevents monopolies
Breaks up companies with control of a market
Prevents false/deceptive advertising
Which of the following is NOT an agency which protects consumers?
Consumer Product Safety Commission
Fair Packaging and Labeling Act
Consumer Price Fixing
Fair Credit Reporting Act
Sales taxes are added to the price of goods and services at the time of purchase.
True
False
Which of the following is an example of an item with excise tax?
Processed snack foods
Gasoline
Clothing
Produce
Which of the following is the term for a special tax placed on foreign goods sold in the United States?
Tea
Excise
Tariffs
Sales
When union representatives and management come together to discuss issues between employees and employers, it is known as which of the following?
Glass ceiling
Collective bargaining
Union Strike
Affirmative Action
Which of the following correctly lists the three branches of government?
Executive, legislative and judicial
Judicial, administrative and sheriff’s
Administrative, legislative and sheriff’s
Executive, statutory and administrativ
How does the Federal Reserve slow inflation and economic growth?
Buying securities
Stimulating economic growth
Lowering interest rates
Raising interest rates
The Sherman Antitrust Act of 1890 did which of the following?
Established the Federal Trade Commission
Allowed the government to break up companies with control of a market
Increased sales taxes and allowed the federal government to collect income tax
Established the Federal Reserve Bank
What is the term for the removal or relaxation of the rules affecting businesses within certain industries?
Regulation
Inexertion
Deregulation
Exertion
What did the Taft-Hartley Act of 1947 legalize?
Closed shops B. Labor unions
Right-to-work laws
Labor unions
Collective bargaining
