PB Ch. 6 Study Guide

Question 1

Cooperatives were formed to

Accepted Answer

save money on the purchase of certain goods and services

Question 2

The process of planning, pricing, promoting,selling, and distributing ideas, goods,and services

Accepted Answer

marketing

Question 3

Partners share _________ liability

Accepted Answer

unlimited

Question 4

Buying and selling of goods that were already produced

Accepted Answer

Procurement

Question 5

The most common type of business in the United States are

Accepted Answer

sole proprietorships

Question 6

Unlimited liability means

Accepted Answer

the owner is responsible for the company's debts

Question 7

Processed good include all of the following except

Accepted Answer

organic vegetables

Question 8

About half of all businesses in the United States are sole proprietorships

Accepted Answer

False

Question 9

Owned and operated by its members

Accepted Answer

cooperative

Question 10

The business or art of money management

Accepted Answer

Finance

Question 11

In order to start a corporation, the first thing one must do is

Accepted Answer

obtain a corporate charter from the state

Question 12

A major disadvantage of owning a sole proprietorship is that the owner has limited liability

Accepted Answer

False

Question 13

Process of creating, expanding, manufacturing, or improving goods and services

Accepted Answer

production

Question 14

An example of a franchise is

Accepted Answer

a McDonald's restaurant

Question 15

A type of business that focuses on providing good and services, not profit

Accepted Answer

non-profit organization

Question 16

Corporations pay taxes on their income and stockholders pay taxes on dividends received.This is

Accepted Answer

double taxation

Question 17

One disadvantage that corporations face is

Accepted Answer

double taxation

Question 18

There are three main types of business organizations: sole proprietorship, partnerships, and

Accepted Answer

corporations

Question 19

A business that moved goods from one business to another

Accepted Answer

intermediary

Question 20

Also known as distributors

Accepted Answer

Wholesalers

Question 21

The process of achieving company goals by planning, organizing, directing,and controlling

Accepted Answer

management

Question 22

The owner is responsible for company's debts

Accepted Answer

unlimited liability

Question 23

Franchisers offer a well known name and a ____________________

Accepted Answer

business plan

Question 24

consumers usually deal directly with

Accepted Answer

retailers

Question 25

An advantage of a partnership is banks are more often willing to lend money to them

Accepted Answer

True

Question 26

Retailers get their goods from

Accepted Answer

wholesalers

Question 27

A dividend is

Accepted Answer

the money made as a result of owning a share of stock

Question 28

Companies benefit when all functional areas

Accepted Answer

work together

Question 29

There are three (3) main types of business organizations

Accepted Answer

True

Question 30

Income from a corporation is taxed twice

Accepted Answer

True

Question 31

The process that involed getting customers do by a product or service

Accepted Answer

marketing

Question 32

Nonprofit organizations

Accepted Answer

focus on providing services rather than making a profit

Question 33

Manufacturers turn raw or processed goods into _______________

Accepted Answer

finished goods

PB Ch. 6 Study Guide

Questions 33

PB Ch. 6 Study Guide

Questions 33