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WorksheetsCh. 8 Econ
Total questions: 22
Worksheet time: 11mins
Which of the following is an advantage of sole proprietorship?
There are almost no requirements to start up a sole proprietorship.
The owner makes all the decisions.
The owner keeps all the profits
All of the above statements are true.
Limited life applies to
corporations.
multinationals.
nonprofit organizations
sole proprietorships
A person who wishes to incorporate a business needs to:
find stockholders.
pay the government dividends.
file for permission with the government.
do all of the above.
A business’s net income is defined as
total sales before expenses
total income after expenses.
total dividends paid to investors.
total expenses before sales.
When two companies that produce the same kind of product merge, this is called a
horizontal merger.
vertical merger.
conglomeration.
multinational merger.
What is the main purpose of incubators?
helping entrepreneurs think of new business ideas
providing entrepreneurs with training to be successful
helping entrepreneurs find investors
To hatch cute little chicks
A venture capitalist’s main goal is usually to
help individuals achieve their dreams.
help their communities.
get a good return on an investment.
teach entrepreneurs managerial skills.
Which of the following is true of both nonprofit organizations and for-profit corporations?
They both pay income taxes
They both pay dividends.
They both use scarce factors of production.
They both issue stock.
Which of the following is true about nonprofit organizations?
The results of their efforts can be analyzed in the same way as for-profit businesses
They work in a businesslike way to promote member interests
Most are informal businesses that are not incorporated.
They make up an insignificant part of the economy.
The government document that grants permission to establish a corporation is called a
charter.
stock certificate
partnership agreement.
limited liability agreement.
A business run by a single person is a
partnership.
corporation
sole proprietorship.
limited liability corporation
In a retail business, the stock held in reserve is called
raw materials
inventory
capital
profits
Which of the following phrases best defines the term limited partnership?
an organization that limits liability to the corporation rather than the individual owners
a partnership in which at least one partner has less responsibility in the business operations and less liability for business losses
a business that is limited to three or fewer investors
a business model that combines aspects of corporations and partnerships
A document certifying ownership of part of a corporation is a
charter.
stock certificate.
dividend check
bond.
Schools, churches, and community organizations are examples of
cooperatives
conglomerates
nonprofit organizations.
labor unions.
If the activities of a nonprofit organization produce revenues, the organization uses the money to
pay dividends to its members.
further its work.
join a chamber of commerce.
grow the business.
A credit union is an example of a
service cooperative.
conglomerate.
producer cooperative.
consumer cooperative.
An organization that buys bulk amounts of goods to distribute to members is a
producer cooperative.
service cooperative.
consumer cooperative
labor union
When a union negotiates pay and other job-related matters, this is called
collective bargaining
going on strike
cooperative bargaining
accessing resources
One of the disadvantages of forming a corporation is that
the corporation provides limited liability for its owners
the corporation can sell stock to raise revenue
the corporation is subject to many government regulations
the corporation pays limited taxes
A voluntary nonprofit organization that buys bulk amounts of goods such as food and sells it to members at prices lower than those charged by regular businesses is called a
consumer cooperative.
service cooperative.
labor union.
credit union
A corporation’s common stock is a
form of stock ownership in a corporation without any voting rights to elect a board of directors
form of stock ownership in a corporation granting one vote per share owned to elect a board of directors.
a form of stock ownership with stockholders being the first to get their investment back before other stockholders.
a form of stock ownership that re-invests the dividends due on the stock back into the corporation.
