The main advantage of a private or publicly traded corporation is:

The owner(s) can only lose what they've invested if business goes bankrupt

Unlimited liability means:

The owner is personally liable for the debts of the business

Gross Domestic Product (GDP) represents:

Value of goods and services produced within a country within a year

A nonprofit organization has all the following characteristics except:

Management is motivated by profit or return on investment

Which of the following is not a characteristic of a mixed or market economy?

Government controls decisions re. goods produced, consumed and distributed

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BBI2O1 Unit 1 Test Review

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Questions 16

Answers

1
The advantage of this form of business ownership is that you don't need business knowledge, just money.
Sole Proprietorship
Corporation
Partnership
Franchise
2
Which of the following businesses is nonprofit?
Heart & Stroke Foundation
Tesla
Axis Chiropractic
SpaceX
3
The main advantage of a private or publicly traded corporation is:
The business has to pay taxes as a separate entity
The owner(s) can only lose what they've invested if business goes bankrupt
The owner(s) can hire specialists to run the business
The owner(s) can sign contracts without consultation
4
A self employed courier (delivery person) would have to buy a van for deliveries. This economic resource is known as:
Natural
None of the above
Capital
Human
5
Unlimited liability means:
The owner can only lose the amount initially invested in the business
The owner can sign contracts and bind partners by the terms
The owner is personally liable for the debts of the business
The owner must pay income taxes to the government based on profits
6
Health care, public transportation, law, financial services and the trades (plumbing, etc.) are part of this sector.
Secondary
Quaternary
Tertiary
Primary
7
The owner of a business can:
Use the profits to develop other innovative products
Withdraw money for personal us
Retain profits in the business for growth and expansion
All of the above
8
Canada is home to the third largest global automotive parts manufacturer, Magna. The manufacturing sector is known as:
Secondary Sector
Quaternary Sector
Primary Sector
Tertiary Sector
9
The logging, fishing, mining, energy and agricultural industries all belong to this sector.
Tertiary
Secondary
Quaternary
Primary
10
Gross Domestic Product (GDP) represents:
Activities related to production, consumption and distribution of goods
Value of goods and services produced by a country divided by population
Number of consumers within a country in a given year
Value of goods and services produced within a country within a year
11
A nonprofit organization has all the following characteristics except:
Operates to champion a cause or help people
Mission statement will include raising funds or awareness
Main goal is to provide a benefit to society
Management is motivated by profit or return on investment
12
The stage of the business cycle when GDP and consumer spending are increasing is known as:
Decline or Recession
Peak
Recovery or Expansion
Trough
13
Ms. Webber went shopping for the family's weekly staples: milk, bread, butter, coffee. This is a _______ purchase.
An impulse buy
A routine purchase
A decision requiring extensive research
A decision requiring limited research
14
Three of the following terms mean the same thing. Which term doesn't fit in?
Producer
Vendor or Supplier
Consumer or Buyer
Seller
15
Which of the following is not a characteristic of a mixed or market economy?
Competition and variety of choice are encouraged
Citizens, companies and government can own private property
Government controls decisions re. goods produced, consumed and distributed
Citizens, companies and government can start a business and keep profit
16
Mutual Agency is a disadvantage of a partnership because all contracts signed are legally binding by all.
False
True

BBI2O1 Unit 1 Test Review Flashcards | StudBud