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EPF Unit 2 Review - Types of Business Flashcards | StudBud
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EPF Unit 2 Review - Types of Business
EPF Unit 2 Review - Types of Business
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Answers
1
In a market economy, individuals pursue their own self-interest.
false
true
2
What does unlimited liability mean to the owner of a business?
The corporation is dissolved when the owner dies.
The owner is responsible for all debt
The owner has limited credit.
He does not have to pay bills
3
Businesses maximize productive efficiency by:
producing stuff at the highest cost
producing a given output at the lowest possible cost
using the least workers
producing highest priced goods
4
The law treats a corporation as a separate business entity.
true
false
5
GDP includes government spending on social security checks
false
true
6
What might a business do if its products don't meet consumer's needs?
try new selling techniques
modify its products to satisfy consumers
start a new business
consider bankruptcy
7
Which one is NOT a type of economy?
command
production
traditional
8
GDP per capita is
consumer & govt spending
GDP divided by population
total national output adjusted for inflation
exports minus imports
9
You produce 3,000 packing boxes in three 10-hour shifts. What is its productivity rate?
100
300
11111
10
What are the three main forms of business organization?
food, gas, & shoe stores
proprietorships, partnerships, & corp
corps, proprietorships, & unions
partnerships, corp, banks
11
GDP is market value of all final goods and services produced in a country in a calendar year.
true
false
12
An economy that relies market prices to allocate goods and services is called a Market Economy
true
false
13
Before comparing output from one
year to others, we adjust for inflation.
false
true
14
Marginal utility is benefit we gain from consuming one more unit of something.
true
false
15
The most common form of business organization is a
partnership
sole proprietorship
cooperative
corporation
16
What is the most essential characteristic of a market economy?
many labor unions
Lots of government regulation
marketplace competition
17
A business owned by two people is called
a sole proprietorship
cooperative
a corporation
a partnership
18
A disadvantage of forming a corporation is
corporation & shareholders both pay taxes
There is no liability
Raising capital is hard
It pays no taxes
19
Consumer spending is the largest component of GDP.
true
false
20
What is profit?
motivation and wealth
commercial activity
money remaining after costs has been paid
an opportunity to earn a better living
21
Output (goods and services) produced per unit of input used is called
Labor force
Factors of production
Productivity
22
Which is NOT a reward of entrepreneurship?
Which is NOT a reward of entrepreneurship?
being creative
doing what you enjoy
risking capital resources
23
If your productivity increasedby 10%. The new productivity is
10
110
24
This type of business requires an agreement between parent firm & independently owned outlet.
sole proprietorship
partnership
cooperative
franchise
25
Credit unions are examples of cooperatives.
true
false
26
A successful consumer cooperative offers its members
representation in court
help in selling their homes
products at lower prices than regular businessescharge
high rate loans
27
A cooperative has one owner
true
false
28
Lower productivity usually results in
Economic growth
Higher costs of production
Higher profits
Lower cost of production
29
An individual who initiates, creates, and manages a new business can be called
A leader
An entrepreneur
A professional
A manager
30
The most important measure of the country's overall economic performance is
Net Exports
CS+GS+ Net exports
Gross National Product (GNP)
Gross Domestic Product (GDP)
31
Which is NOT true of businesses?
They can survive without profits
They pay taxes and provide jobs.
They are rewarded with profits by satisfyingconsumers.
The wealth they create benefits the entirecommunity.
32
The rate at which goods or services are produced especially output per unit of labor measures
Productivity
Profits
Inflation
Profits
33
What is the most important task of all economies?
To balance imports and exports
To make the best use of scarce resources
To balance the government's budget
34
Which of the following means that GDP has been adjusted for inflation?
real GDP
real GNP
nominal GNP
nominal GDP
35
Resources required to produce the goods and services are called Factors of production
true
false
36
Business Investment spending is the largest component of GDP
.
false
true
