| A | B |
|---|
| What are the three main forms of business organization? | sole proprietorships, partnerships, and corporations |
| Which is true of a sole proprietorship? | Profits from a sole proprietorship are only taxed once. |
| What does unlimited liability mean to the owner of a business? | The owner is responsible for all the company's debts. |
| Which type of business organization is a partnership most like? | sole proprietorship |
| Which is NOT an advantage of forming a corporation? | Profits are taxed twice: at the corporate level and at the shareholder level. |
| In order to become a corporation, what must a business have? | a corporate charter |
| Which business structure contains both the benefits of a small business and a corporation? | franchise |
| Which type of business makes a finished product, such as an automobile? | manufacturer |
| How does a product get from a manufacturer to a wholesaler? | by an intermediary |
| Where do stores get the products that they sell? | wholesalers |
| Which is true of intermediaries, wholesalers, and retailers? | They buy and sell goods. |
| In which type of business do most Americans work? | service |
| Which department in a company sets the price of a product? | marketing |
| Which department in a company pays the bills for the business? | accounting |
| Which best describes management's most important job? | Achieving goals by planning, controlling, and evaluating the effective use of resources. |
| Sole proprietorships account for about __ of all the businesses in the United States. | 70 percent |
| Income from a sole proprietorship is | taxed once |
| One of the disadvantages of having a partnership is | unlimited liability |
| A major advantage of forming a corporation is _ liability | unrestricted |
| An organization that is owned and operated by its members is a __. | cooperative |
| A contractual agreement to use the name and sell the products or services of a company in a designated geographic area is called a _? | franchise |
| If one of your goals is to limit your personal liability, it would be best to organize your business as a __. | corporation |
| During the life of a business, the way the business is organized __. | can be changed |
| A business owned by ten people who share the risks and rewards of the business is a __. | partnership |
| The easiest what to organize a business is as a __. | sole proprietorship |
| A business that turns raw materials into finished goods is called a __. | processor |
| A firm that turns corn into vegetable oil is called a(n) __. | processor |
| A company that gathers materials in their original state from natural resources is called a __. | producer |
| A processor changers raw material into a __ product. | more finished |
| Processed goods are turned into finished products by a __. | manaufacturer |
| A business that moves good from one business to another is called a(n)_. | intermediary |
| A firm that buys large quantities of produce from many farms and then divides fruits and vegetables into smaller quantities and sells them to grocery stores is a __. | distributor |
| The buying and reselling of goods that have already been produced is called __. | procurement |
| The process of achieving company goals by planning, organizing, directing, controlling, and evaluating the effective use of resources is called __. | management |
| Maintaining and checking records, handling bills, and preparing financial reports for a business is called ___. | accounting |
