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Business Ownership Chapter 1

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

a business owned by two or more persons who share the risks and rewards

a)

Partnership

b)

Joint Venture

c)

Cooperation

2.

Stock –

a)

shares of ownership in a corporation

b)

Shares of ownership in a partnership

c)

Fish

3.

Intermediary is a business that acts as a go-between in moving goods from producers to consumers, such as wholesalers, retailers, and distributors

a)

True

b)

False

4.

Sole proprietorship-a business owned by______ person

a)

one

b)

Two

c)

any amount

5.

a business treated by law as separate from its owners

a)

Corporation

b)

Partnership

c)

tax business

6.

Unlimited liability is a full legal and financial responsibility for a business.

a)

True

b)

False

7.

Limited liability-financial responsibility of business owners only for what they invested in a business

a)

True

b)

False

8.

a contractual agreement to use the name and sell the goods or services of an existing company

a)

Franchise

b)

Cooperation

c)

Sole Proprietorship

9.

Nonprofit organization-a business whose main purpose is to provide a service rather than to make a profit. An example of a nonprofit is

a)

Wal-Mart

b)

Church

c)

Hair Salon

10.

Cooperative-an organization of businesses owned and operated by the __________, who pool their resources and share the benefits

a)

non-profit

b)

government

c)

members

11.

Farmers Electric Company has members, this is an example of a _______________.

a)

cooperative

b)

company

c)

stock

12.

Service

a)

are tangible objects that satisfy people's wants

b)

are actions, such as haircuts and car repair, which also satisfy people's wants.

c)

none of the above

13.

Goods

a)

are tangible objects that satisfy people's wants

b)

are actions, such as haircuts and car repair, which also satisfy people's wants

c)

none of the above

14.

A logo helps brand recognition

a)

True

b)

False

15.

When you open a new business, it will have a small start up cost.

a)

True

b)

False

16.

McDonald's is a

a)

franchise

b)

cooperative

c)

partnership

17.

Sole Proprietorship

a)

Great risk for the owner

b)

Easy to create

c)

little government regulation

d)

All the above

18.

a joint venture ends when a project is completed

a)

True

b)

False

19.

Corporation–

a)

Separate legal entity owned by one or more shareholders and managed by a board of directors

b)

no limited liability to investors

c)

easy to form

20.

Wal- Mart is an example of a corporation

a)

True

b)

False