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CH 4 Business in the Free Enterprise (Pretzel)

Total questions: 40

Worksheet time: 1hrs 6mins

Name
Class
Date
1.

A business that buys large quantities of products directly from producers and sells the products in smaller quantities to retailers.

a)

not-for-profit organization

b)

producer

c)

wholesaler

d)

retailer

e)

business market

2.

An organization that exists to serve some public purpose.

a)

not-for-profit organization

b)

producer

c)

wholesaler

d)

retailer

e)

business market

3.

A business that creates goods and services.

a)

not-for-profit organization

b)

producer

c)

wholesaler

d)

retailer

e)

business market

4.

A business that buys products from wholesalers or directly from producers, and sells them to consumers to make a profit.

a)

not-for-profit organization

b)

producer

c)

wholesaler

d)

retailer

e)

business market

5.

A market that consists of customers who buy products for use in a business.

a)

not-for-profit organization

b)

producer

c)

wholesaler

d)

retailer

e)

business market

6.

A business that is owned and often operated by a single individual.

a)

proprietorship

b)

stock

c)

dividend

d)

cooperative

e)

partnership

7.

A share of ownership in a corporation.

a)

proprietorship

b)

stock

c)

dividend

d)

cooperative

e)

partnership

8.

A portion of a corporation’s earnings distributed to stockholder.

a)

proprietorship

b)

stock

c)

dividend

d)

cooperative

e)

partnership

9.

A business that is owned and operated by those using its services.

a)

proprietorship

b)

stock

c)

dividend

d)

cooperative

e)

partnership

10.

An association of two or more persons who co-own a business with the objective of earning a profit.

a)

proprietorship

b)

stock

c)

dividend

d)

cooperative

e)

partnership

11.

Which of the following is an example of an intermediary?

a)

Auto manufacturer

b)

Auto parts manufacturer

c)

New car dealership

d)

Auto repair shop

12.

__ is a numeric system to classify businesses and collect economic statistics.

a)

B2B

b)

NAICS

c)

LLC

d)

 B2C

13.

Which is not an example of a not-for-profi t organization?

a)

United Way

b)

American Cancer Society

c)

Microsoft

d)

American Red Cross

14.

An accounting fi rm that prepares taxes for an advertising agency operates in the___ market.

a)

business-to-consumer

b)

consumer-to-business

c)

business-to-business

d)

consumer-to-consumer

15.

Which of the following is a business that is owned and operated by a single individual?

a)

Partnership

b)

Proprietorship

c)

Corporation

d)

Cooperative

16.

The two common types of partnerships are _____.

a)

general and unlimited

b)

general and cooperative

c)

general and limited

d)

limited and unlimited

17.

Which is not an advantage of a partnership form of ownership?

a)

Limited liability

b)

Easy to start

c)

Combined financial resources

d)

Simple tax structure

18.

Which is a form of business ownership provides limited liability to its owners, but is taxed as a partnership?

a)

S Corporation

b)

Cooperative

c)

Green business

d)

Limited partnership

19.

A major advantage of forming a corporation is __.

a)

profit

b)

limited life

c)

 management

d)

limited liability

20.

Cooperatives are run __.

a)

by the government

b)

democratically

c)

similarly to an LLC

d)

without voting members

21.

One of the sole purposes of a for-profit business is to be productive and generate money for its (a)   .

22.

Governmental organizations are part of the (a)   sector

23.

The customer of a service business is often called a (a)   .

24.

The (a)   market consists of customers who buy products for their own use.

25.

Wholesalers are often called (a)   .

26.

A partner who does not participate in managing the business is a(n) (a)   partner.

27.

. The simplest and most common form of business ownership is a(n) (a)   .

28.

The form of business ownership described as an “artifi cial person” is a(n) (a)   .

29.

The group of individuals who makes high-level management decisions for a corporation and establishes company policies is called the (a)   .

30.

The form of business ownership that combines the benefi ts of a corporation with those of proprietorships and partnerships is a(n) (a)   .

31.

The free enterprise system is the driving force that enables retailers to make a profit and stay in business. Central Products is a manufacturer that generated sales of $838,515 last year. Total expenses were $719,311. What was the profi t or loss last year?

(a)  

32.

Sigma Gears is a manufacturer that operates in the same industry as Central Products. Sigma’s sales were $1,325,875 last year, with total expenses of $1,269,288. What was Sigma Gear’s profi t or loss? Compare Sigma Gear’s profi t or loss to Central Products in the previous question. Which company earned more money last year?

(a)  

33.
What is the total cost with sales tax?
Price $17.95
Tax 6%
a)
$19.03
b)
$18.50
c)
$1.08
d)
$2.15
34.

Mr. Barrett bought a new battery for his car. The battery cost $72. Since batteries are a taxable item, he had to pay a sales tax of 7.5%. What was the total cost of the battery in dollars and cents?

a)

$79.50

b)

$5.40

c)

$77.40

d)

$66.60

35.

Mr. Lucas bought a new lounge chair for his game room. The one he chose was $425. He had to pay a sales tax of 8.2%. What was the amount of sales tax he paid on the chair?

a)

$24.90

b)

$44.30

c)

$34.85

d)

Not Here

36.
Vickie makes $40,000 annually.  If she pays 20% in income tax, what is the amount of income tax she will pay?
a)
8000
b)
80000
c)
2000
d)
1200
37.
What is the total cost with sales tax?
Price $2.75
Tax 5%
a)
$2.89
b)
$3.00
c)
$0.14
d)
$2.75
38.
How much tax would you pay on a new TV that is $899 at Best Buy, if the tax rate is 6.5%?
a)
$957.44
b)
$841
c)
$58.43
d)
$905.50
39.
How much tip should you leave if you want to tip 23% at Applebee's on a $27.31 bill?
a)
$6.28
b)
$33.59
c)
$21.03
40.
Lona wants to a buy raincoat for her goat.  If the raincoat costs $39.99 and has a sales tax rate of 7%.  What will be the FINAL PRICE (with tax) of the raincoat?  
a)
$42.79
b)
$42.78
c)
$2.80
d)
$2.79