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- 1. Multiple ChoiceSara’s Hair Palace is a small, locally owned beauty salon in Sterling. This represents what type of business?corporationpartnershipsole proprietorship
- 2. Multiple ChoiceSusie is starting her own lemonade store. What economic term would best describe Susie and what does that term mean?Consumer – a person who uses or consumes goodsPartnership – partner in the lemonade standEntrepreneur- - person who takes a risk to start a new company
- 3. Multiple ChoiceDan has $5,000. He wants to invest his money in the type of business that has the least amount of liability. In which type of business should he invest?corporationpartnershipproprietorship
- 4. Multiple ChoiceA business partnership has ___________ who share the risks and the profits.One ownerNo more than three ownersTwo or more ownersFive or more owners
- 5. Multiple ChoiceIn which of the following would one person be responsible for all of the risks but also receive all of the profits?CorporationPropreitershipPartnershipDual owner business
- 6. Multiple ChoiceWhat do we call a person who is willing to take the risks of starting a business in order to make a profit?ProprieterPartnerEntrepreneurIncorporater
- 7. Multiple ChoiceDecreased government spending may result in _____ taxes.highermorelower
- 8. Multiple ChoiceWhich of the following is an advantage of sole proprietorships:Limited liabilityUnlimited financial powerDual taxationQuick decision making
- 9. Multiple ChoiceWhich of the following is a disadvantage of sole proprietorships:Limited capitalControlPrivacyTax liability
- 10. Multiple ChoiceWhich of the following is an advantage of general partnerships:Limited capitalUnlimited liabilityEasy to endCombined capabilities
- 11. Multiple ChoiceWhich of the following is an advantage of the corporation as a form of business ownership:Less complex requirementsSeparate owners and managersLimited liabilityHigh Taxes
- 12. Multiple ChoiceTwo local business owners want to reduce competition, so they decide to form one organization from the two companies. This is an example of amonopoly.hostile takeover.merger.trading bloc.
- 13. Multiple ChoiceA business owner who prefers to maintain complete control of all business activities might consider structuring the venture as a(n)sole proprietorshipgeneral partnership.franchisecorporation.
- 14. Multiple ChoiceWhat is a company called that sells stock to raise money?PartnershipCorporationSole ProprietorshipLimited Partnership
- 15. Multiple ChoiceHow is a corporation different from a sole proprietorship?Corporations are owned by only one personCorporations can sell stock to raise money for the business.Sole proprietorships have limited liability for the owners.Sole proprietorships require a legal charter to start the business.
- 16. Multiple Choice
Which business type makes up approximately 75% of all businesses?Sole ProprietorshipPartnershipCorporation - 17. Multiple ChoiceWhich business type has the most sales in the USA?Sole ProprietorshipPartnershipCorporation
- 18. Multiple ChoiceOf the three types of businesses, which one provides the most jobs? (Hint: Which one is the most common?)CorporationPartnershipSole proprietorshipNone of these are correct
- 19. Multiple ChoiceAn entrepreneur can choose to have which type of business organization?Sole ProprietorshipPartnershipCorporationAll of the above
- 20. Multiple ChoiceWhy would a company need to issue stock?To increase its' customer base.To raise money.To stop the government from regulating it.To show customers that it's successful.
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