Font size
WorksheetsACADEC ECON Quiz #11
Total questions: 70
Worksheet time: 1hrs 7mins
A form of business ownership that operates under a charter issued by the state is called a(n):
corporation.
sole proprietorship.
general partnership.
entrepreneur.
Joan borrowed $10,000 from a relative to start her own business. Assuming she takes all responsibility for the company's financial risks, the company is most likely a:
sole proprietorship.
limited partnership.
corporation.
partnership.
A business that is owned by two or more people who share the risk of loss and the chance for profit is known as a:
partnership.
sole proprietorship.
franchise.
corporation.
The business agreement under which a business distributes the goods or services of a parent company is called a:
franchise.
corporation.
partnership.
proprietorship.
Which of the following is a characteristic of a business-format franchise:
continuous assistance is provided by the franchisor.
products are bought directly from the supplier.
it is the least popular franchise arrangement.
the name of the business is chosen by the franchisee.
What type of business is owned by stockholders who share the business's profits?
Corporation
Partnership
Cooperative
Sole Proprietorship
A type of business ownership in which one or more of the owners does not have full liability is called a:
limited partnership.
general partnership.
sole proprietorship.
service organization.
To sell sweatshirts, jackets, and T-shirts imprinted with ABC University's logo, the Collegiate Sportswear Company pays royalties to the university. What type of business ownership does this situation exemplify?
Licensing agreement
Business-format franchise.
Multi-level marketing
General partnership
Which of the following is a benefit of the business-format franchise arrangement?
Reduced risk of failure
Strict operating hours
Limited number of vendors
Uniform store appearance
What do business owners consider when they select a business ownership structure?
Personal circumstances, type of business, and product mix
Product versatility, financial needs, and advertising strategies
Personal circumstances, financial needs, and type of business
Product versatility, advertising strategies, and personal circumstances
“To form my business, I used all of my savings and borrowed from the bank, and I’m personally
liable for all of the debts.” This is an example of which of the following forms of business
ownership?
Partnership
Sole Proprietorship
Corporation
Cooperative
John, Robert, and Charles were college friends who wanted to start a business. John has creative ability, Robert’s expertise is selling, and Charles’ expertise is management. However, each has limited capital. The ideal business ownership for these young men is a:
merger.
partnership.
franchise.
corporation
If all of the individuals who own a business share unlimited liability for the business’s losses, these individuals are part of a(n):
private corporation.
general partnership.
"S" corporation.
"C" corporation.
Lois and Lora plan to open a florist shop. Lois is unable to devote full time to the daily operations of the shop but wishes to provide financial support. Which form of business partnership is most likely to appeal to Lois?
Private
Nonprofit
General
Limited
The Scott Company decided to sell stock to raise capital. Under what form of business organization does the company operate?
Corporation
Cooperative
Partnership
Sole Proprietorship
What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public?
Limited
Franchise
"C"
Private
A type of state-chartered corporation that was developed to help small businesses by taxing them as individuals in a partnership is a(n) __________ corporation.
"S"
"C"
Private
Limited
What type of corporation sells millions of shares and must furnish complete information about its earnings, assets, and debts?
"C"
Private
"S"
Limited
The American Red Cross is an example of a(n) ___________ corporation.
hybrid
nonprofit
"S"
"C"
One of the characteristics of the form of business ownership known as an LLC is that:
this kind of business can last indefinitely.
it is required to have at least three owners (members).
the IRS collects taxes based on the LLC’s gross income.
the owners’ personal property cannot be taken to pay the business’s debts.
One reason a physicians’ practice might form a partnership as an LLP is to:
ensure that the business experiences unlimited liability.
take advantage of higher dividend returns on shares of its stock.
protect innocent partners from the malpractice of another partner.
permit the general public to purchase licensing rights in the practice.
Wendy’s sells the right to operate its restaurants to individuals who meet the company’s criteria. The arrangement between Wendy’s and these individuals is an example of:
a partnership agreement.
multi-level marketing.
licensing.
franchising.
Jake wanted to run his own business but was unsure that he had adequate business skills to be successful. Which type of business would give Jake the help he needs?
Private corporation
Sole proprietorship
Business-format franchise
Product trade-name franchise
Which of the following is a characteristic of a product trade-name franchise?
it is not open to the public.
The franchisee can choose the name of the business.
The franchisee has unlimited liability.
It is owned by shareholders
Jane is the owner of a pizza shop associated with a national chain of pizza restaurants. She established her business in a regional supermarket. The pizza shop is referred to as a:
host franchise.
strategic alliance.
master licensee.
piggyback franchise.
Olivia runs a home-based business that distributes high quality, handmade baskets. She sells the products and earns commissions on the baskets sold by four other basket representatives. This is an example of:
product licensing.
product trade-name franchising.
multi-level marketing.
strategic partnering.
Illegally run organizations that emphasize the collection of high fees from potential product distributors are often referred to as:
pyramid schemes.
pressure-cooker tactics.
marketing rackets.
deceptive advertising gimmicks.
ABC Specialty Wear is the only company that has written permission to use a national football team’s logo on its sportswear. This is an example of a:
product trade-name contract.
sole proprietorship.
licensing agreement.
limited joint-venture contract.
Which of the following statements is true regarding joint ventures?
Joint-venture arrangements are usually short-term relationships
Joint ventures are used only when it is necessary to raise a lot of capital
Large corporations are the only business structures that can benefit from joint ventures
An independent attorney must always be consulted before signing a joint-venture agreement
A business with a single owner can be a:
sole proprietorship.
private corporation.
"S" corporation.
Non-Profit organization.
all of these are possible options.
Which of the following is an advantage of a partnership?
Unlimited Liability
Arguments
Agreement on strategy
Easy to start
What is the definition of UNLIMITED LIABILITY?
A legal obligation on the owners of a business to settle all debts of the business. There is no distinction between the assets and debts of the business and the personal assets and debts of the owner.
Owners are not fully liable for the company’s debts
Which one of these is NOT a type of business in the private sector:
producers
service
intermediary
firefighters
Which type of business is growing faster than any other type of business?
manufacturer
service
extractor
not for profit
The customer of a service business is often called a
client
patron
proprietor
realtor
A partner who does not participate in managing the business is a(n)
limited partner
unlimited partner
general partner
lazy partner
Two common types of partnerships are
general and unlimited
general and cooperative
general and limited
limited and unlimited
A coffee grower in Brazil is a
manufacturer
extractor
producer
farmer
A company that mines coal is a
producer
extractor
manufacturer
retailer
What does DBA mean?
Doing business as
Don't buy any
Done Being Available
Doodle Bug Association
If you were starting a business, would you have a partner(s) or stay a sole proprietor and why?
