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WorksheetsBusiness test
Total questions: 85
Worksheet time: 47mins
How is a corporation different from a sole proprietorship or partnership?
A corporation has only one or two owners.
A corporation is usually owned by one person.
A corporation requires a legal charter with the state.
The owners (stockholders) have limited liability.
No paperwork (charter or agreement) is required to start which type of business?
Partnership
Franchise
Sole Proprietorship
Corporation
Which type of business allows the owner to keep all of the profit for him/herself?
Partnership
Franchise
Sole Proprietorship
Corporation
Which business depends on just one person for the skills and talents to run the business?
Sole Proprietorship
Partnership
Corporation
Franchise
the potential for conflict between partners
A company wants to computerize its accounting system. It issues stocks to raise additional funds.
Sole Proprietorship
Partnership
Corporation
2. Mario and his brother Luigi started a plumbing company together. They split the profits and the expenses.
Sole Proprietorship
Partnership
Corporation
3. Mary opened a dance studio. She receives all the profits from her students’ lessons.
Sole Proprietorship
Partnership
Corporation
Mr. Lewis pays taxes on dividends for stocks he owns in a manufacturing company. The company also pays taxes on its income before distributing it to stockholders.
Sole Proprietorship
Partnership
Corporation
Dan, Tony, and Mac own a pizza parlor. They rotate hours and days off.
Sole Proprietorship
Partnership
Corporation
Mr. Wells owns a card shop. Because baseball cards have declined in popularity his business is struggling. He decides he has to sell his house to pay off his business debts.
Sole Proprietorship
Partnership
Corporation
Unger and Unger is a law firm consisting of two brothers who started their own business. They both are responsible for all profits and risks that their firm will have.
Sole Proprietorship
Partnership
Corporation
9. What type of business is described in the diagram below?
Sole Proprietorships
Partnerships
Corporation
10. What characteristic of a corporation is missing from the diagram on the below?
Owner shares the profits with family members only
Stockholders share the profits
Main owner receives the majority of profits
Board of Supervisors has the final say on new products
This function of business involves creating, expanding, manufacturing, or improving goods and services.
Production
Procurement
Which of the following is a type of business which operates as a separate legal entity?
corporation
franchise
partnership
sole partnership
A _______ forms boards to act as governing bodies. It is the most complicated form of business.
franchise
partnership
sole proprietorship
corporation
Groups of individuals who invest money in various types of companies in search of making a profit are known as which of the following?
investors
capitalists
socialists
investing entrepreneurs
Jimbo set up a pizza shop right beside a high school to take advantage of the unhealthy eating habits of teens. What type of ownership is this?
Partnership
Sole Proprietorship
Cooperative
Corporation
This is an example of a non-profit business.
Midtown Ford
Thai Express
Sunova Credit Union
Canadian Cancer Society
Select the true statement about sole proprietors.
They are run by and employ one person.
Most small businesses are sole proprietors.
All sole traders are public companies.
Most charities are sole traders.
a production function:
Gives the minimum level of output that can be produced from a combination of inputs
Gives the different levels of output that can be produced from a combination of inputs
Gives the maximum level of output that can be produced from a combination of inputs
All of the above
A time period when at least one factor of production is held constant is called
Market period
Very short period
Short run
Long run
Which of the following is an example of a variable factor?
Permanent labour which remains employed at all levels of output
Land on which the factory is located
Machinery which does not change easily
None of the above
The total output produced by 4 units of labor is 25 units and that of 5 units of labor is 40 units. The marginal product of the fifth unit of labor is
15 units
25 units
40 units
65 units
The conversion of factors of production into goods and services
Productivity
Outputting
Specialization
Production
Factors that can be altered or changed in the short run or relatively short space of time
Productive capacity
Variable factors
Fixed factors
Immobile factors
When the marginal product is negative, the total product is ______________.
decreasing
positive
negative
maximum
Production function shows the relationship between input and output.
TRUE
FALSE
The marginal production from 3 to 4 labors is _________.
2
7
4
8
The output maximum is at labor of _______________
3 labors
4 labors
5 labors
6 labors
Which do you think is easiest to vary in the short run?
Land
Labour
Capital
Entrepreneurship
Select all of the following which represent variable factors of production
Capital equipment
Cost of Raw material
Labour
Fuel and Power
Land
Which of the following represent fixed factors of production
Capital equipment
Cost of Raw material
Labour
Fuel and Power
Land
The timeframe when some resources are fixed
Short-term
Short-run
Long-term
Long-run
When the amount of a factor increases the total output
Decreases
is maximum
Increases
becomes zero
The law of variable proportions is said to exist when
there are only two variable factoras
there is a fixed factor and a variable factor
all factors are variable
The law of variable proportion examines the production function
is a long run production function
with one fixed factor
keeping all factors variable
with one factor variable, while keeping the other factors fixed
Which of the following describes an eventual decline in the productivity of factor inputs as additional units of variable factors are added to fixed resources?
Law of diminishing marginal utility
Law of diminishing marginal returns
Laffer curve
Law of diminishing total product
What happens to total product when marginal product becomes negative?
Increases
Decreases
Remains unchanged
Reaches a peak
A firm experiences decreasing marginal return only when
Stage 1
Stage 2
Stage 3
Stage 4
At Stage 1 of production, a rational producer _________.
will stop the production
will reduce the usage of labors
will continue to increase the number of labors
will stay the current combination of machine and labors.
What does marginal cost (MC) tell us?
Is cost from fixed input
Is variable cost
The increase in output that arises from an additional unit of input
The increase in total cost that arises from producing an additional unit of output
Fixed cost
long run ATC rises as output increases
long run ATC falls as output rises
costs that do not vary with the quantity of output produced
long run ATC stays the same as the quantity of output changes
In the third of the three stages of production:
the total product curve has an increasing slope
the marginal product curve lies completely below the average product curve.
the marginal product curve has a positive slope
marginal product is negative
Fixed or Variable?
Wages paid for factory labour?
Fixed
Variable
Fixed or Variable?
Raw materials
Fixed
Variable
Fixed or Variable?
Transport costs
Fixed
Variable
Fixed or Variable?
Office rent
Fixed
Variable
Fixed or Variable?
Insurance
Fixed
Variable
Fixed or Variable?
Salaries
Fixed
Variable
Dara makes bracelets and sells them in her shop. Which is a fixed expense for Dara’s business?
the cost of the beads
the cost of the string
the cost of advertising
rent for her shop
What is a cost?
Something the company receives
The price of a product
Something the company must pay
Something the company sells
What are fixed expenses?
Irregular expenses that change from week to week or month to month
The amount of money in your bank account
The amount of cash in your purse or wallet
Expenses that stay the same from week to week or month to month
What are variable expenses?
Irregular expenses that change from week to week or month to month
The amount of money in your bank account
Costs that do not fluctuate from week to week or month to month
The amount of cash in your purse/wallet
How are total costs broken down?
Fixed & Total
Total & Variable
Total & Indirect
Fixed & Variable
Fixed cost + variable cost =
average costs
total costs
marginal costs
unit costs
What are costs?
the money coming into a business when customers buy a product
the money a business spends on business activities
the money business invests
Which of the following is a variable cost in the short run?
rent of the factory
wages paid to factory workers
interest payments on borrowed financial capital
salaries paid to upper management
