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Chapter 6 Test Review Flashcards | StudBud
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Chapter 6 Test Review
Chapter 6 Test Review
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StudBud Administration
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Covers business ownership & operations
Flashcards
37 cards
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Practice quiz
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Questions
37
Answers
1
Which type of business makes a finished product, such as an automobile?
Processor
Producer
Manufacturer
Industry
2
A business that gathers raw products in their natural state.
Processor
Procurement
Producer
Production
3
A business that distributes goods; also known as a distributor.
Retailer
Wholesaler
Intermediary
Processor
4
What does unlimited liability mean to the owner of a business?
Owner is responsible for all the company's debts
Corporation is dissolved when the owner dies
Company will fail if the owner does not have all the skill
Owner has limited credit
5
In which type of business do more Americans work?
Intermediary
Retail
Wholesale
Service
6
Which is NOT an advantage of forming a corporation?
There is limited liability for the founder.
Company continues even after one owner dies
Profits are taxed twice: at the corporate level
Raising capital for startup is easier
7
The function of business that involves money management.
Procurement
Finance
Accounting
Marketing
8
Which is NOT a function of all businesses?
Finance & accounting
Production & Procurement
Marketing
Retailing
9
Businesses that change raw materials into more finished products.
Processor
Manufactures
Producer
Production
10
Achieving company goals by planning, organizing, directing, controlling, & evaluating.
Management
Production
Processing
Producing
11
The process of planning, pricing, promoting, selling & distributing ideas, goods & services.
Accounting
Retailing
Marketing
Management
12
A type of business that focuses on providing a service rather than making profit.
Franchise
Corporation
Non-Profit Organization
Partnership
13
Which department in a company pays the bills for the business?
Procurement
Management
Accounting
Finance
14
Which is true of a sole proprietorship?
Revenues are higher than a corporation
Share decision making with others
It is hard to start
Profits are only taxed once
15
Which is true of intermediaries, wholesalers, & retailers?
They ship goods
They store goods for long periods of time
They buy & sell goods
They divide up goods into small lots
16
How does a product get from a manufacturer to a wholesaler?
By a processor
By an intermediary
By a producer
By a retailer
17
Which type of business
most likely
offers a service to its customers?
Partnership
Franchise
Cooperative
Nonprofit
18
The process of creating, expanding, manufacturing, or improving goods & services.
Place
Producing
Processing
Procurement
19
Which business structure contains both the benefits of a small business and a corporation?
Nonprofit organization
Franchise
Cooperative
Car sharing
20
Businesses that make finished products out of processed goods.
Wholesaler
Manufactures
Retailer
Processor
21
Contracted to use the name & sell products of a company in a specific geographical area.
Non-Profit Organization
Corporation
Franchise
Cooperative
22
The buying & reselling of goods that have already been produced.
Finance
Processing
Production
Procurement
23
In order to become a corporation, what must a business have?
Stock certificates
Double taxation
A corporate charter
Over 900 employees
24
A business owned by 2 or more people who share its risks & rewards.
Partnership
Corporation
Sole Proprietorship
Intermediary
25
Which type of business organization is a partnership most like?
Sole Proprietorship
Corporation
26
A business that moves goods from one business to another.
Producer
Processor
Marketing
Intermediary
27
Company that is registered by a state & operates apart from its owners.
Non-Profit Organization
Corporation
Franchise
Sole Proprietorship
28
The function of business that involves maintaining records, paying bills, & financial reports.
Accounting
Production
Retailer
Marketing
29
A claim that holds a firm's owners responsible for no more than the capital they have invested.
Limited Liability
Corporation
Charter
Unlimited Liability
30
Where do stores get the products that they sale?
Wholesalers
Intermediaries
Retailers
Industries
31
Organization that is owned & operated by its members.
Franchise
Corporation
Cooperative
Wholesaler
32
A liability that holds the owner fully responsible for a company's debts.
Limited Liability
Unlimited Liability
33
Which department in a company sets the price of a product?
Production
Finance
Marketing
Accounting
34
A business that purchases goods from a wholesaler & sells them to the consumer.
Manager
Producer
Retailer
Wholesaler
35
A business owned by only one person.
Corporation
Partnership
Sole Proprietorship
36
Which is the most common form of business organization in the U.S.?
Franchise
Sole Proprietorship
Corporation
Partnership
37
What are the 3 main forms of business organization?
Sole proprietorship, partnerships, & corporations.
Partnerships, corporations, & dividends
Corporations, proprietorship's, & stockholders
Partner proprietorship, corporations, sole proprietorship
