WorksheetsTakk 2024 Unit 3 Exam Study Guide
Total questions: 60
Worksheet time: 30mins
Business Owned by a Single Individual
Partnership
Sole Proprietor
Cooperative
Limited Liability Company (LLC)
Sole Proprietorship business has
limited liability
no liability
50% liability
unlimited liability
To start a partnership business, what should be the minimum number of partners?
2
10
4
20
In partnership, partners liabilities are
Limited
Unlimited
Limited to the capital invested
Limited to the amount mentioned
Unlimited liability means
the business is closed down because of too much debt
the owners' personal possessions can be used to cover the firm's debts
the bank will refuse to give loans to the business
the business will struggle to attract investors
Decision is taken in partnership firm
Individually
By the partner who has invested more money
By anyone
Mutually ( all partners together)
when a group of people form a business or organization and have rights and liabilities separate from the individuals involved
Corporation
Shareholder
Asset
Liability
any person, company or other institution which owns at least one share in a company (also known as a stockholder)
Shareholder
C Corporation
Corporation
S Corporation
money or debt owed
Asset
Liability
Shareholder
Medicare Tax
when a corporation makes a profit, it pays a federal corporate income tax on it, and then if the company declares a dividend, the stockholders must report it is personal income and pay more taxes
Double Taxation
Liability
Asset
FICA Taxes
What type of business organization has the most sales in the United States?
Sole proprietorships
Partnerships
Corporations
Nonprofits
When two companies that produce the same kind of product merge, this is called a
Horizontal merger
Vertical merger
conglomeration
Multinational merger
A franchise is
a temporary investment through a limited partnership in a start-up business.
a temporary investment through a general partnership in a start-up business.
a temporary investment through leasing or renting a company’s successful business model.
a temporary investment through stock ownership in a company’s successful business model.
Why does no firm dominate in a perfect competition.
No firm wants to
Each firm sells to different people
Each firm produces exactly the same towards total supply that they cannot influence prices
one firm will eventually dominate and make it a monopoly
A government license that gives the inventor of a new product the exclusive right to produce and sell it.
market power
economies of scale
patent
license
An obstacle that makes it difficult for new firms to enter a market
barrier to entry
hurdle
unions
licence
One of the requirements for a monopoly is that
there is a unique product with no close substitutes
products are high priced
there are several close substitutes for the product
the product cannot be produced by small firms
What are some examples of price discrimination
senior citizens discounts
sale ads
commercials
milk pricing
which item being sold would be considered monopolistic competition?
jeans
oranges
ps4
electricity
What item being sold is an example of an oligopoly
apples
socks
playstation gaming system
shoes
A major producer of automobiles buys a large rental car company.
Horizontal
Vertical
Conglomerate
A life insurance company merges with a major telecommunications company.
Horizontal
Vertical
Conglomerate
In a Perfect Competition, products are basically..
differentiated
identical
similar
opposite
In Monopolistic Competition you would find that purchases are made generally based on __
supply/demand
brand loyalty
price
price of substitute products
An Oligopoly is when there are
few producers who control the market
only one producer
an open market with plenty of producers
a market that hasn't yet been discovered
In an oligopoly, when a few producers join forces publicly to control pricing and production levels (btw: it's illegal in the US)
COLLUSION
CARTEL
TRUST
FEDERATION
The market for agricultural produce is an example of:
monopoly
oligopoly
monopolistic competition
perfect competition
Coke and Pepsi are the main producers and control the soda market. This is an example of:
Oligopoly
Monopoly
Monopolistic Competition
Perfect Competition
Nike signed Michael Jordan in 1984 in order to get more young people to buy Nike instead of Converse or adidas. They tried to show their shoe was cool and therefore superior. This is-
monopoly
monopolistic competition
oligopoly
perfect competition
Your family can only get electricity or natural gas to their home through one provider. There is no other option. This is an example of_
monopoly
monopolistic competition
oligopoly
perfect competition
What is the purpose of government regulations and limitations on private businesses?
To hinder fair competition
To protect public interest
To increase operational costs
To discourage entrepreneurship
The goals of government are to protect the rights of individuals and businesses and to provide a stable environment, but the main goal of business is to
make a profit.
provide a safe working environment.
save the environment.
provide the best products.
Government tries to protect competition by
preventing all monopolies.
restricting the production of certain products.
regulating monopolies.
controlling the prices of products.
What is consumer protection?
Laws and regulations to protect consumers from unfair business practices
Tax breaks for large corporations
Ways to increase business profits
Government subsidies for businesses
How does the government break up and prevent monopolies?
Increased Taxes
Antitrust legislation and regulation
Deregulation
Laissez-faire
A barrier to entry is
an economic term for economies of scale
illegal in most markets
anything that prevents new firms from entering the market
a factor that increases competition
What law was first passed to address monopoly power?
Sherman Antitrust Act
Clayton Antitrust Act
Pinkerton Antitrust Act
Makerpeace Antitrust Act
An organization of workers dedicated to protecting members' interests and improving wages, hours and working conditions for all.
Labor Union
Workers Rights
Worker Strikes
Collective Bargaining
The negotiation of wages and other conditions of employment by an organized body of employees
Labor Unions
Workers Rights
Worker Strikes
Collective Bargaining
Nonunion workers hired to do the jobs of striking workers
Strikebreaker
Injunction
Grievance
Boycott
(a) pushed for safer working conditions, (b) wages, and (c) hours.
A recent trend in the labor force is that the number of
Workers in the United States has decreased since the 1980s
People working in the manufacturing industry has increased
Younger workers is expected to increase by 2016
Women and minorities in the labor force has increased
The process by which people around the world are becoming increasingly interconnected is called
Globalization
Certification
Inshoring
Telecomuting
The Business Cycle measures ___ over time.
wealth
inflation
economic growth
The business cycle is made up of how many phases?
5
4
3
2
GDP declines during a(an)
peak
contraction
expansion
The business cycle directly measures which economic goal?
full employment
growth
price stability
Which of the following is a recession, or contraction?
A
B
C
D
Which of the following is a peak?
A
B
C
D
Which of the following is an expansion, or recovery?
A
B
C
D
Which of the following is a trough?
A
B
C
D
If a news headline says, "3 months of consecutive job losses is impacting consumer confidence."
Where on the business cycle is the current economy?
Peak
Contraction/Recession
Trough
Expansion/Growth/Recovery
If a news headline says, "Finally!!! 2 straight months of increased jobs."
Where on the business cycle is the current economy?
Peak
Contraction/Recession
Trough
Expansion/Growth/Recovery
