WorksheetsUnit 3 Econ Review
Total questions: 74
Worksheet time: 1hrs 15mins
Liam, Scarlett, and Priya decided to start a business together. What form of business ownership are they using for their joint venture? (a)
Sole Proprietorship
Franchise
Partnerships
Corporation
This type of organisation is a legal entity separate from its owners. (a)
The owners share the risks and the profits (a)
Advantage of this business is that owner keeps all the profit and is his/her own boss
Partnership
Sole proprietorship
Corporation
Franchise
Which of the following is not an advantage of a sole proprietorship? (a)
-Governed by Board of Directors
-CEO, COO, CFO
-Stocks sold to raise capital
-Subject to high start-up and royalty fees-Must adhere to corporate standards-Privately owned locations but associated with a larger, more recognizable brand (a)
This definition best describes...
In a general partnership,
the business continues even if one partner dies
partners must pay specific business taxes on stock they issue
partners usually draw up legal papers called articles of partnership.
partners are only liable for the business' debt up to the amount of their investment
An advantage of a corporation is that
owners pay fewer taxes than owners of other forms of business.
the business is subject to little government regulation.
owners have limited liability for debt.
owners have direct and immediate control over daily management of the business.
Barry and two associates have been operating a business that is not going well. Barry is stressed out because the company is over $200,000 in debt and he knows that if it goes out of business, he and his two associates will have to pay it out of their own pockets. It sounds like Barry and his two associates have a (a)
partnership.
corporation.
sole proprietorship.
stock.
Mr. Simpson is liable for all the debts of his company. Mr.Simpson has which type of business organization? (a)
sole proprietorship
monopoly
perfect competition
corporation
Ramon decided to open his own software business. He borrowed money from a bank to buy computers and office equipment, and he hired one assistant. What is one DISADVANTAGE of Ramon's type of business organization? (a)
limited liability
ease of start-up
flexibility
unlimited liability
Which type of business organization has the advantage of limited liability but the disadvantage of less control over business decisions? (a)
perfect competition
partnership
sole proprietorship
corporation
Bernice owns her own local gift shop. She acquired the necessary loans to open it, assumes all the financial risk herself, and makes all the decisions. It sounds like Bernice's business is a/an
partnership
franchise
corporation
sole proprietorship
Two toy companies decide to merge because they believe they will be able to develop more ideas for new toys and produce and sell them faster, at lower costs.
Horizontal
Vertical
Conglomerate
A major producer of automobiles buys a large rental car company. (a)
Horizontal
Vertical
Conglomerate
A life insurance company merges with a major telecommunications company.
Horizontal
Vertical
Conglomerate
A large producer of business and personal computers buys a company that produces computers for the home market.
Horizontal
Vertical
Conglomerate
A commercial bank buys a credit union.
Horizontal
Vertical
Conglomerate
A natural gas producer buys a company that owns natural gas pipelines that transport gas to major urban areas.
Horizontal
Vertical
Conglomerate
A cable television company merges with a company that uses satellite dish technology to provide television service to consumers.
Horizontal
Vertical
Conglomerate
An automobile manufacturer that buys a baseball team.
Horizontal
Vertical
Conglomerate
Which of the following best describes a strike?
Workers refuse to work until certain demands are met
Workers refuse to buy products from a business to protest the actions of the business
Workers decide to go work in a similar business
A business refuses to allow workers to work until the union meets the demand of the owners
Ryan and Luke work at the same restaurant. Ryan earns minimum wage as a dishwasher. Luke earns an extra $3 an hour as a cook. What accounts for the differences in their wages?
Ryan's job is professional and Luke's job is skilled
Ryan's job is unskilled and Luke's job is semi-skilled
Both are unskilled but, Ryan is lazy and Luke works hard
Luke's job is unskilled while Ryan's is skilled
An organization of workers dedicated to protecting members' interests and improving wages, hours and working conditions for all.
Labor Union
Workers Rights
Worker Strikes
Collective Bargaining
The negotiation of wages and other conditions of employment by an organized body of employees (a)
Labor Unions
Workers Rights
Worker Strikes
Collective Bargaining
Which of the following prohibits wage and salary discrimination for jobs that require equivalent skills and responsibilities?
Equal Pay Act
Taft-Hartley Act
Fair Labor Standards Act
Sherman Antitrust Act
Which of the following describes the minimum wage?
state law making it illegal to force workers to join a union
lowest wage that can be paid by law to most workers
highest wage that can be paid by law to most workers
barrier that prevents women and minorities from advancing up the corporate ladder (a)
open shop
company unions
closed shop
glass ceiling
Your health, skills, education and abilities are just some of the things that make up your (a)
human capital
wage
category of labor
labor mobility
Picking fruit requires no skills or training. This type of job falls under the category of...
unskilled labor
semi-skilled labor
skilled labor
professional labor
A yard and lawn landscaper requires enough mechanical skill or training to run a lawn mower. This type of job falls under the category of...
unskilled labor
semi-skilled labor
skilled labor
professional labor
A carpenter is able to operate complex machinery and can perform their job with little supervision. This type of job falls under the category of (a)
unskilled labor
semi-skilled labor
skilled labor
professional labor
A computer programmer writing software has the highest levels of education. This type of job falls under the category of...
unskilled labor
semi-skilled labor
skilled labor
professional labor
The ___ was created by Congress to investigate charges of discrimination in the workplace.
Equal Employment Opportunity Commission
Clayton Anti-Trust Act
National Labor Relations Act
Fair Labor Standards Act
According to the chart, most workers are...
not part of a union
part of a union
represented by a union
looking to join a union
A portion of a company’s earnings that is paid to shareholders, or people that own that company’s stock, on a quarterly or annual basis (a)
Dividend
Interest
Compound Interest
Capital gain
Workers who are contracted or not full time. They are becoming more attractive to employers because they do not get benefits and typically have lower wages (a)
Why are many U.S. firms moving manufacturing jobs overseas?
Labor and cost levels overseas
Transportation overseas is cheaper
More skilled workers are available overseas
Goods are transported overseas when they are finished.
Diversification lowers your risk? (a)
The ____________ guarantees your bank deposits up to $250,000?
Chinese Government
FDIC (Federal Deposit Insurance Corporation)
The President
The Bank
A financial action taken today that will create financial benefits in the future? (a)
Which of these are functions of money?
medium of exchange that allows the trade of goods and services
holds value over time
standard of value that allows comparison of the value of goods related to one another
used as the only means of trade between nations
A type of money that is backed by a material, such as gold, is referred to as (a)
Commodity money can be best described as money that is
backed up by a valuable material
valuable based on the material that the money is made from
used to purchase valuable materials
valuable because a government says it is and people accept that it is valuable
Money in the United States is which type of money? (a)
_____________ is money by government decree, has no alternative value
Gold standard
Specie
Barter
Fiat money
You can easily carry money in a pocket or a purse. This reflects what characteristic of money? (a)
This represents a piece of ownership in a company.
Certicate
Option
Share of stock
Mutual fund
Quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money
Diversification
Globalization
Risk-Return Ration
Liquidity
Great for emergency funds due to their liquidity and stability
Savings Accounts
CD's - Certificate of Deposits
Retirement Account
Brokerage Account
This is considered an IOU and the higher the interest rate on this, the more risky it is (a)
A disadvantage to operating a business as a partnership might be that
they are relatively easy to form.
it is easier to raise capital.
the partners must get along and work well together.
partners may provide complementary skills.
Collective bargaining is the
practice used by employers to hire groups of laborers.
practice used by employers to get the cheapest labor possible.
idea that laborers working in groups are more productive in the workplace.
idea that laborers acting together have greater success in negotiating with management.
If a major electronics bought a professional sports team.
Horizontal Merger
Vertical Merger
Conglomerate
None of the above
Which of the following best describes the concept of unlimited liability?
The shareholders are responsible for repaying the business debts.
Personal assets of the business owner(s) can be used to repay the business debts.
Portions of a company's profit paid to shareholders.
The business owner(s) is/are not responsible for paying the business debts.
What is an advantage to operating a business as a partnership?
The business has a limited life span.
Partnerships often involve people with complementary skills.
The owners have unlimited liability for business debts.
Each partner can only lose the amount they have invested into the business.
Which of the following best describes the purpose of a labor union?
Advocate for workers rights
Ensure employees are doing their job correctly
Hiring new workers for blue collar jobs
Fire workers for making too many mistakes
Who are the owners of a corporation?
No one - they are their own entity
Shareholders
Board of Directors
Management
Highly skilled workers, like doctors, earn higher wages because the supply of labor is _____________ and the demand for their services is _____________.
High; High
High; Low
Low; High
Low; Low
Group of works who collective bargaining to get higher pay, more rights and better working conditions (a)
companies that have a presence in other countries, such as McDonald's or Coca-Cola, are known as:
Multi-national
Multi-corporational
Multi-Faceted
Multi-Proprieted
Work that requires specialized skills and training, but not necessarily a college degree would be known as _________. An example would be _________.
Unskilled labor; messenger
Semi-skilled labor;
accountant
Skilled labor;
electrician
Professional labor;
teacher
What it is called when a neutral person meets with both sides to find a variable solution?
Strike
Mediation
Arbitration
Collective Bargaining
What is it called when a settlement by a third party which is drawn up and legally binding for both sides?
Strike
Mediation
Arbitration
Collective Bargaining
