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Business Management Chapter 6 Flashcards | StudBud
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Business Management Chapter 6
Business Management Chapter 6
40 terms
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170 plays
Business ownership and operations
Flashcards
40 cards
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Practice quiz
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Questions
40
Answers
1
Manufacturers turn raw or processed goods into?
finished goods
services
none of the above
useable products
2
This document provides a long term strategy for the growth of the business.
Business plan
Business strategy
Partnership agreement
Franchise agreement
3
Banks are often more willing to lend money to partnerships than sole proprietorships.
False
True
4
An organization that is owned and operated by its members.
Non Profit
Cooperative
Wholesaler
Manufacturer
5
A business that moves goods from one business to another is called?
Wholesaler
Retailer
Intermediary
Producer
6
A dividend is?
the money earned as a result of owning stock
the money lost on a share of stock
the cost of the share of stock
a tax paid by the stockholder
7
About half of all businesses in the United States are sole proprietorships.
False
True
8
Nonprofit organizations?
focus on providing a service rather than making a profit
outnumber sole proprietorships in the United States
must still pay taxes
do not register with the government
9
The business or art of money management is known as?
Finance
Marketing
Budgeting
Accounting
10
Consumers usually deal directly with?
manufacturers
retailers
distributors
wholesalers
11
Income from a corporation is taxed twice.
False
True
12
Maintaining and checking records, handling bills, and preparing financial reports is?
Finance
Accounting
Procurement
Management
13
The process that involves getting consumers to buy a product or service is?
Wholesale
Retail
Production
Marketing
14
Retailers get their goods from?
consumers
dealers
wholesalers
partnerships
15
Which of the following functions involved analyzing records to make future decisions?
Finance
Marketing
Accounting
Management
16
Achieving goals by planning, organizing, directing, controlling and evaluating resources is
management
procurement
marketing
production
17
The first thing you must do to start a corporation is?
Hire employees
Hire an accountant and a lawyer
Obtain a corporate charter from the government
Start bank accounts and get financing
18
Companies benefit when all functional areas
belong to a union
operate independently
monitor one another
work together
19
How many functions are involved in the operation of all types of business?
5
6
7
9
20
What is a major advantage of a corporation?
None of the above
Board of directors
Limited Liability
Double taxation
21
This group of people are also known as distributors?
Intermediaries
Wholesalers
Retailers
Producers
22
The process of creating, expanding, manufacturing or improving goods and services is called?
Manufacturing
Production
Procurement
Distribution
23
Partners share this type of legal and financial liability.
Extensive
None of the above
Limited
Unlimited
24
A type of business that focuses on providing a service and not on making a profit.
Non Profit
Cooperative
Franchise
Wholesaler
25
Processed goods include all of the following except?
steel
white sugar
gasoline
organic vegetables
26
Cooperatives were formed to?
promote each other
save money on the purchase of certain goods and services
sell more products
all of the above
27
There are 3 main types of business organizations.
True
False
28
Unlimited liability is?
owner is responsible for accidents on the business property
owner is responsible for company debt
owner shares liability with the company stockholders
owner must have insurance on the business
29
Which of the following is NOT one of the main types of business organizations?
Sole proprietorship
Corporations
Partnership
Franchises
30
Which of the following is NOT a main function of all business types?
Research and Development
Production and Procurement
Marketing and Management
Finance and Accounting
31
When the owner is responsible for company debt it is called?
Limited liability
No liability
Unlimited liability
Liability
32
An advantage of a partnership is?
partners share the liabilities of the business
partners make decisions together
all of the above
partners bring different skills and talents to the business
33
An example of a franchise is?
a Sears Department store
a Wal-Mart superstore
a McDonalds restaurant
a Mom and Pop grocery store
34
A major disadvantage of owning a sole proprietorship is that the owner has limited liability.
False
True
35
One disadvantage that corporations face is?
double taxation
environmental laws
competition
the cost of raw materials
36
Which of the following industries produce raw goods?
Fishing
Agriculture
Forestry
All of the above
37
The buying and reselling of goods that have already been purchased is called?
Procurement
Wholesale
Retail
Distribution
38
The most common type of business in the United States are?
Sole Proprietorships
Partnerships
Corporations
Mom and Pop stores
39
A contractual agreement to use a company name and services in a designated area.
Retailer
Wholesaler
Franchiser
Distributor
40
The process of planning, pricing, selling and distributing ideas, goods and services is?
procurement
marketing
financing
accounting
