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21 Economic System and Business Ownership Quiz

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

What was America's main industry during the early development of the country? What major era in history moved America in a new direction of economic development?

a)

agriculture

farming

b)

factories

c)

services

2.

What are other names used to describe free enterprise?

a)

Profit System

b)

Capitalism

c)

Market

Economy

d)

All the above

3.

The six basic factors on which the US free enterprise system is based are:

Private ownership, control of productive resources, free market, profit motive, supply and demand, competition, and limited government involvement.

a)

False

b)

True

4.

Name three things a company might do to become more profitable in a free market.

a)

reorganize the company

b)

lay off workers

c)

install new technology

d)

cheat and steal

5.

What are the disadvantages of a monopoly?

a)

open competition

b)

prevents competition

c)

limits the

Free Market

d)

charges Fair

prices

6.

Which is NOT a legal form of business ownership.

a)

Sole Proprietorship

b)

Partnership

c)

Human Trafficking

d)

Corporation

7.

Order from simple, easy to start Business Structure to most complex.

a)

Sole

Proprietorship

b)

Partnership

c)

LLC (Corporation)

d)

C Corporation

1)
2)
3)
4)
8.

What is the promotion, selling and distribution of goods and services?

a)

Supply

b)

Marketing

c)

Demand

9.

Advantages of a Partnership include having a Board of Directors and Vertical Structure.

a)

false

b)

true

10.

If a Stockholder invests $10,000 in a Corporation, he is liable for ALL liabilities of the corporation.

a)

False

b)

True