Which of the following statements about corporations is true?

corporations sell stock to raise money

One advantage of a general partnership over a sole proprietorship is a general partnership

can rely on more than one person for financial backing

Which of the following phrases best describes a wholesaling business?

a business that sells products to retailers

A business owner with unlimited liability

could have to sacrifice personal money and possessions to pay business debt

A nonprofit corporation

provides limited liability to its members

One advantage of a corporation as compared to a sole proprietorship is

a corporation provides limited liability forits owners

Over the past fifty years the American economy has changed in what way?

service and trade businesses have becomethe dominant industries

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Types of Business and Business Ownership Ch.3 Review

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Questions are from the Check Your Understanding section of Chapter 3 in the Entrepreneurship Owning Your Future Textbook

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Questions 12

Answers

1
The businesses predicted to undergo the most growth in the coming decade are
businesses that convert materials into products
businesses that sell retail products towholesalers
primarily service businesses
primarily manufacturing businesses
2
The purpose of a cooperative is
to provide unlimited liability to itsmembers
to earn profits for management
to benefit its members
to pay dividends to investors
3
Which of the following statements about corporations is true?
corporations are easier to set up than sole proprietorships
a limited partnership is a type of corporation
corporations sell stock to raise money
a cooperative is a type of corporation
4
One advantage of a general partnership over a sole proprietorship is a general partnership
is a corporation
provides unlimited liability
can rely on more than one person for financial backing
provides limited liability
5
Which of the following phrases best describes a wholesaling business?
a business that sells products to final buyers
a business that sells products to retailers
a business that converts materials into products for sale
a business that performs services
6
A business owner with unlimited liability
could have to sacrifice personal money and possessions to pay business debt
is a shareholder of a corporation
is not personally responsible for the debtsof the business
would not have to sacrifice personal money and possessions to pay debts
7
Which type of business ownership provides limited liability for the owner(s)?
corporation
all of the above
general partnership
sole proprietorship
8
A nonprofit corporation
is set up to pay dividends to its shareholders
provides unlimited liability to its members
is set up to make profits for its investors
provides limited liability to its members
9
One advantage of a corporation as compared to a sole proprietorship is
a corporation has fewer shareholders
a corporation is easier to set up andrequires less paperwork
a corporation has a partnership agreement
a corporation provides limited liability forits owners
10
The special permit that allows retailers to purchase goods tax-free from wholesalers and collect sales tax from buyer
retailing permit
reseller's permit
tax permit
wholesale permit
11
Most businesses in the United States are
cooperatives
corporations
partnerships
sole proprietorships
12
Over the past fifty years the American economy has changed in what way?
service businesses have become far less important to the economy
service and trade businesses have becomethe dominant industries
wholesaling has become the dominant industry in the economy
manufacturing has replaced retailing as the most dominant industry

Types of Business and Business Ownership Ch.3 Review Flashcards | StudBud