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Unit 4 Econ Study Guide

Total questions: 29

Worksheet time: 58mins

Name
Class
Date
1.

The most common type of business organization in the United States is the...

a)

sole proprietorship

b)

partnership

c)

merger

d)

franchise

2.

The difference between the higher selling price of a stock and the lower original purchase price is the investors...

a)

capital gains

b)

profits

c)

control

d)

use of money

3.

Shareholders generally like a stock split because...

a)

they get more stock shares

b)

they get more profit

c)

they get more popularity

d)

they get less spent money

4.

A fact sheet containing data on a company finances is called a...

a)

propectos

b)

profits

c)

stocks

d)

revenue

5.

the advantages of a sole proprietorship includes..

a)

easy to start up

b)

full control

c)

profits

d)

no worries

6.

A sole proprietorship consists of...

a)

one person running the business

b)

two people running the business

c)

three people running the business

d)

as many people

7.

Government regulations that specify the areas of a city or county where various business activities can we pursue are called.....

a)

zoning laws

b)

region laws

c)

city laws

d)

federal laws

8.

the advantages of Partnerships include easy startup, specialization, shared decision-making and...

a)

shared interest

b)

shared money

c)

more profit

d)

friendship

9.

An advantage of partnerships is that specific duties can be assigned to different partners, depending on the partners' skills and talents. The economic term for this practice is...

a)

skills

b)

specialization

c)

knowledge

d)

smartness

10.

The disadvantages of partnerships include...

a)

unlimited liability, shared profits

b)

limited longevity, potential conflict

c)

more responsibility, not equal

d)

more stress, limited liability

11.

Unlimited liability means you...

a)

all partners are responsible for the actions of the other

b)

others have to do what they say

c)

all partners can't give money

d)

there isn't equality

12.

The most common way that corporations raise money is by...

a)

selling stock in the company

b)

selling discounts

c)

fundraisers

d)

less intervention

13.

The corporate financial instruments that provides guaranteed dividends is...

a)

preferred stock

b)

preferred profit

c)

shared profits

d)

shared partnership

14.

two companies joining together to form one larger company is called...

a)

merger

b)

partnership

c)

franchise

d)

competition

15.

which of the following are disadvantages of mergers...

a)

loss of jobs

b)

loss pay for employees

c)

competiton

d)

shared profits

16.

the disadvantages of sole proprietorship include unlimited liability, sole responsibility, limited growth potential and...

a)

lack of longevity

b)

less profit

c)

not easy to start

d)

hard to work with

17.

The business structure that is legally distinct from its owners is the...

a)

a corporation

b)

merger

c)

partnership

d)

sole proprietorship

18.

The business organization that can hire workers and own property as if it were an individual is the...

a)

corporation

b)

merger

c)

partnership

d)

sole proprietorship

19.

A major advantage of corporate mergers is...

a)

increased efficiency

b)

profits

c)

less competition

d)

limited liability

20.

the type of business in which the owner pays a larger fee to a corporation to use its name is...

a)

a franchise

b)

parrtnership

c)

merger

d)

sole proprietorship

21.

the type of business that is limited to the members is called...

a)

cooperative

b)

sole proprietorship

c)

merger

d)

partnership

22.

Which is not a type of merger?

a)

vertical

b)

horizontal

c)

conglomerate

d)

horizon

23.

the advantages of operations include limited liability, separation of ownership, the ease with which capital can be raised and...

a)

lonegvity

b)

shared goods

c)

profit

d)

more production

24.

Walmart buying target would be an example of a...

a)

horizontal merger

b)

vertical merger

c)

conglomerate merger

d)

horizon merger

25.

a car company buying a tire company would be an example of a...

a)

vertical merger

b)

horizontal merger

c)

conglomerate merger

d)

horizon merger

26.

the disadvantage of a sole proprietorship that could directly affect the owner's family is...

a)

unlimited liability

b)

shared profits

c)

more work

d)

less money

27.

if your partner has an auto accident with the company car and causes injuries from one mark of liable because of the principle of....

a)

unlimited liability

b)

unlimited shared power

c)

responsibility

d)

accountability

28.

two disadvantages of sole proprietorship share in partnerships are or lack of longevity and

a)

umlimited liability

b)

shared profits

c)

low profits

d)

more responsibility

29.

two advantages of corporations that benefit stockholders are flexibility and....

a)

more profit

b)

limited liability

c)

shared profits

d)

less responsibility