WorksheetsChapters 5 & 6.1 Principles of Business
Total questions: 40
Worksheet time: 30secs
The most important role of business is to provide employment for people.
Producers use resources to make things that are needed by others.
True
False
Service businesses represent the fastest-growing segment of the economy.
True
False
Nonprofit corporations do not pay corporate income taxes.
True
False
An S corporation is a corporation involved in the service industry.
True
False
A mission statement defines what the business wants to achieve.
True
False
In a matrix organization structure, work is arranged around business functions.
True
False
An organizational chart is a detailed list of job duties and responsibilities.
True
False
In what type of business organization is each owner liable for all business debts, even if the debts were created by other owners?
S Corporation
Corporation
Proprietorship
Partnership
Which organizational structure does this describe?
All people with jobs related to a specific function work together.
Functional
Matrix
Which organizational structure does this describe?
Assignments may be temporary or long-term.
Functional
Matrix
Which organizational structure does this describe?
People often have little interaction with people in other parts of the business.
Functional
Matrix
Which organizational structure does this describe?
People with varied backgrounds work together to serve the customer.
Functional
Matrix
Which organizational structure does this describe?
Work is arranged within main business functions such as production and marketing.
Functional
Matrix
Which organizational structure does this describe?
Work is structured around specific projects, products, or customer groups.
Functional
Matrix
The large number of people born between 1946 and 1964.
intermediaries
contingent worker
baby boomers
generation X
A statement of results a business plans to achieve
goal
Articles of Incorporation
Partnership agreement
policies
The form of ownership most common among US businesses is
proprietorship
partnership
corporation
nonprofit
All of the following types of businesses are producers EXCEPT
extractors
farmers
retailers
manufacturers
The easiest form of business to start is the
S Corporation
proprietorship
partnership
nonprofit corporation
A partnership
is the most common form of business ownership in the U.S.
limits the liability of the owners to the amount of money invested.
is funded through the sale of stock.
requires at least two owners.
The direction for a business comes from its
mission statement
code of ethics
corporate bylaws
policy manual
The obligation to complete specific work is called
accountability
span of control
authority
responsibility
An automobile factory is this type of business.
manufacturer
service business
intermediary
extractor
A grocery store is this type of business.
manufacturer
service business
intermediary
extractor
An internet service provider is this type of business.
manufacturer
service business
intermediary
extractor
A producer that mines coal is a(n)
wholesaler
manufacturer
extrator
retailer
Which of the following is NOT one of the six basic activities that all businesses perform?
conserving resources
buying goods and services
raising capital
generating ideas
A ____________ must name a board of directors that will make the major policy and financial decisions for the business.
proprietorship
partnership
corporation
limited liability partnership
Successful entrepreneurs have many personal characteristics in common.
True
False
An entrepreneur is someone that takes a risk by starting his or her own business.
True
False
A good example of an entrepreneur is a(an)
police officer
shop owner
UPS delivery driver
customer service representative
Personal characteristics of successful entrepreneurs include
persistence
recklessness
greed
pessimism
New businesses are often discontinued because of
low sales
competitive pressure
higher than expected expenses
all of the above
According to the Small Busines Administration, a small business is an independent business with fewer than ________ employees.
500
100
50
10
In the United States, nearly as many small businesses close as begin each year.
True
False
Entrepreneurs
almost never own their first business while in their teens.
must have a very low tolerance for ambiguity.
must have a business degree to be successful.
come from all age categories and educational backgrounds.
MOST of the money needed to start a new business comes from
the entrepreneur and his/her family and friends.
credit given by businesses that sell products and services tot he new business.
the sale of stock
personal and business loans.
Scrubbles laundry detergent has been on the market for years. The manufacturer of Scrubbles recently added a new ingredient to give the detergent extra cleaning power. This is an example of an
invention.
improvement.
innovation.
opportunity cost.
Successful entrepreneurs tend to have all of the following characteristics EXCEPT
energetic.
creative.
hesitant.
inquisitive.
