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Chapter 3: Types of Business & Business Ownership Flashcards | StudBud
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Chapter 3: Types of Business & Business Ownership
Chapter 3: Types of Business & Business Ownership
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Chapter 3 Quiz: Types of Business & Business Ownership
Flashcards
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Questions
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Answers
1
One advantage of a corporation as compared to a sole proprietorship is...?
A corporation has a partnership agreement
Corporation's are easier to set up & require less paperwork
A corporation provides limited liability for its owners
A corporation has fewer shareholders
2
Over the past 50 years the American economy has changed in what way?
Service businesses have become less important in the economy
Manufacturing has replaced retailing as the leading industry
Wholesaling has become the dominant industry in the economy
Service&trade businesses have become the dominant industries
3
A business owner with unlimited liability.....?
Would't have to sacrifice their money&things to pay the dept
Is a shareholder of the corporation
Is not personally responsible for the debts of the business
Could sacrifice their money&things to pay business debt
4
One advantage of a general partnership over a sole proprietorship is a general partnership....?
Provides limited liability
Is a corporation
Can rely on more than one person for financial backing
Provides unlimited liability
5
Which of the following phrases best describes a wholesaling business?
A business that converts materials into products for sale
A business that sells products to retailers
A business that sells products to final buyers
A business that performs services
6
Which type of business ownership provides limited liability for the owner(s)?
Corporation
All of the above
Sole proprietorship
General partnership
7
Allows retailers to buy tax-free goods from vendors & collect sales tax from final buyers
Tax permit
Wholesale permit
Retailing permit
Reseller's permit
8
Which of the following statements about corporations is true?
Corporations are easier to set up than sole proprietorships
A cooperative is a type of corporation
Corporations sell stock to raise money
A limited partnership is a type of corporation
9
The businesses predicted to undergo the most growth in the coming decade are?
Primarily manufacturing businesses
Businesses that convert materials into products
Primarily service businesses
Businesses that sell retail products to wholesalers
10
A nonprofit corporation...?
Provides unlimited liability to its members
Is set up to pay dividends to its shareholders
Is set up to make profits for its investors
Provides limited liability to its members
11
Most businesses in the United States are...?
Cooperatives
Sole proprietorships
Partnerships
Corporations
12
The purpose of a cooperative is...?
to provide unlimited liability to its members
to earn profits for management
To pay dividends to investors
To benefit its members
