Worksheets19.2 econ Assessment
Total questions: 32
Worksheet time: 16mins
Name
Class
Date
1.
Capital Formation
a)
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm;
b)
the transfer of money from households to businesses and government through investments and loans
c)
requirement that an owner is personally and fully responsible for all losses and debts of a busines
d)
situation in which a firm legally ceases to exist when an owner dies or quits
2.
Limited Life
a)
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm;
b)
the transfer of money from households to businesses and government through investments and loans
c)
requirement that an owner is personally and fully responsible for all losses and debts of a busines
d)
situation in which a firm legally ceases to exist when an owner dies or quits
3.
Sole Proprietorship
a)
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm;
b)
the transfer of money from households to businesses and government through investments and loans
c)
requirement that an owner is personally and fully responsible for all losses and debts of a busines
d)
situation in which a firm legally ceases to exist when an owner dies or quits
4.
Unlimited Liability
a)
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm;
b)
the transfer of money from households to businesses and government through investments and loans
c)
requirement that an owner is personally and fully responsible for all losses and debts of a busines
d)
situation in which a firm legally ceases to exist when an owner dies or quits
5.
Partnership
a)
form of partnership where one or more partners are not active in the daily running of the business, and whose liability for the partnership's debt is restricted to the amount invested in the business
b)
form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual,
c)
people who own a share or shares of stock in a corporation
d)
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
6.
Stockholders
a)
form of partnership where one or more partners are not active in the daily running of the business, and whose liability for the partnership's debt is restricted to the amount invested in the business
b)
form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual,
c)
people who own a share or shares of stock in a corporation
d)
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
7.
limited partnership
a)
form of partnership where one or more partners are not active in the daily running of the business, and whose liability for the partnership's debt is restricted to the amount invested in the business
b)
form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual,
c)
people who own a share or shares of stock in a corporation
d)
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
8.
dividends
a)
check paid to stockholders, usually quarterly, representing a portion of corporate profits
b)
certificate of ownership in a corporation; can be either common or preferred stock
9.
Preferred Stock
a)
most basic form of corporate ownership, generally with one vote per share for stockholders
b)
form of stock without vote, in which stockholders get their investments back before common stockholders
10.
Common Stock
a)
most basic form of corporate ownership, generally with one vote per share for stockholders
b)
form of stock without vote, in which stockholders get their investments back before common stockholders
11.
maturity
a)
strategy of holding different investments to minimize risk
b)
company that sells shares of a portfolio of securities, e.g., stocks and bonds issued by other companies
c)
person who buys or sells securities for investors
d)
life of a bond or length of time funds are borrowed
12.
Stockbroker
a)
strategy of holding different investments to minimize risk
b)
company that sells shares of a portfolio of securities, e.g., stocks and bonds issued by other companies
c)
life of a bond or length of time funds are borrowed
d)
person who buys or sells securities for investors
13.
portfolio diversification
a)
strategy of holding different investments to minimize risk
b)
company that sells shares of a portfolio of securities, e.g., stocks and bonds issued by other companies
c)
life of a bond or length of time funds are borrowed
d)
person who buys or sells securities for investors
14.
Mutual Fund
a)
strategy of holding different investments to minimize risk
b)
company that sells shares of a portfolio of securities, e.g., stocks and bonds issued by other companies
c)
life of a bond or length of time funds are borrowed
d)
person who buys or sells securities for investors
15.
Countries with good capital formation generally have positive economic growth.
a)
True
b)
False
16.
A sole proprietorship is the least common type of business owned.
a)
True
b)
False
17.
In a sole proprietorship, the business owner has
a)
zero ownership in the company
b)
zero liability
c)
unlimited liability for all debt
18.
In a partnership, the owners divide
a)
Debt only
b)
Profits only
c)
Profits and Debt
19.
In a General partnership there is management of all things split equally.
a)
True
b)
False
20.
A joint Venture is
a)
set for limited time or a single project
b)
a kind of debt
21.
In a limited partnership, all partners have equal ownership.
a)
True
b)
False
22.
Corporations have stockholders.
a)
True
b)
False
23.
To start a corporation one must register with the state, establish business name, register with IRS to get tax id number, permits, registrations, licenses, and create board of directors.
a)
True
b)
False
24.
What are disadvantages of a corporation?
a)
less regulation on business
b)
Taxes
c)
high start up costs and more regulation
25.
Which type(s) of loans can small businesses get?
a)
Start up loans.
b)
Small business administration loans.
c)
Lines of credit.
d)
All of the above.
26.
Corporations can raise capital by
a)
Selling bonds
b)
Issuing Stocks
c)
Borrowing Directly
d)
Converting Profit
e)
All of the above
27.
When you are ready to invest, there are two unknowns. They are
a)
Refund-ability and flexibility.
b)
Return and risk.
c)
Risk and Bonds.
d)
Liability and flexibility.
28.
Undiversifiable risk is specific to the company, like poor management.
a)
True
b)
False
29.
Investing in stocks is
a)
Extremely low risk.
b)
Low risk.
c)
High risk.
30.
An IRA account is to plan for your
a)
adulthood.
b)
early adulthood.
c)
Retirement.
31.
With a traditional IRA,
a)
you pay taxes as you deposit.
b)
you do not have to pay taxes.
c)
pay taxes when you receive payments at retirement age.
d)
none of the above.
32.
With a Roth IRA,
a)
you pay taxes when you get the payments at retirement age.
b)
you do not have to pay taxes.
c)
taxes taken out before you make deposits and do not pay taxes when you withdraw money.
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