BJU Economics Ch. 7 Review

Question 1

Which type of business ownership is the least popular?

Accepted Answer

Partnership

Question 2

What important business factor can sole proprietorships protect better than corporations can?

Accepted Answer

Information

Question 3

How many owners does a sole proprietorship have?

Accepted Answer

One

Question 4

Which business type gives its owner(s) the most freedom?

Accepted Answer

Sole proprietorship

Question 5

Which form of business tends to be the most unstable?

Accepted Answer

Sole proprietorship

Question 6

What is the primary advantage of partnerships over sole proprietorships?

Accepted Answer

Greater financial resources

Question 7

Which form of business ownership pays the highest taxes?

Accepted Answer

Corporation

Question 8

Which is the most limited in terms of management and employee skills?

Accepted Answer

Sole proprietorship

Question 9

What is the most popular business model in the United States today?

Accepted Answer

Sole proprietorship

Question 10

Which form of business ownership has to contend with the most government regulation?

Accepted Answer

Corporation

Question 11

Which form of business ownership potentially doesn&#x27;t have the weakness of limited life?

Accepted Answer

Corporation

Question 12

Which of the following is NOT an accurate criterion for an LLC?

Accepted Answer

No more than fifty shareholders

Question 13

Which type of business ownership is the most popular?

Accepted Answer

Sole proprietorship

Question 14

What is the chief advantage of incorporating a company?

Accepted Answer

Limited personal liability

Question 15

In which form of business ownership it is easiest to raise financial capital?

Accepted Answer

Corporation

Question 16

The responsibility to pay a business&#x27;s debts and obligations is called _____.

Accepted Answer

liability

Question 17

In the eyes of the law, a corporation possesses which two important qualities?

Accepted Answer

Individuality and immortality

Question 18

According to the text, what disadvantage often results from corporations&#x27; great size?

Accepted Answer

Impersonality

Question 19

What book of the Bible gives much advice about personal financial practices?

Accepted Answer

Proverbs

Question 20

Which generally has the most experienced management and specialized employees?

Accepted Answer

Corporation

Questions 20