A Short Business Management Sample Quiz

In a sole-proprietorship, the owner is responsible for all debts. This means that if the business incurs any financial obligations or liabilities, the owner is personally liable for them. Unlike in a corporation or partnership where the business entity itself is responsible for its debts, in a sole-proprietorship, there is no legal distinction between the owner and the business. This means that the owner's personal assets can be used to satisfy any outstanding debts of the business.

All of the options mentioned - generating ideas, raising capital, and keeping records - are activities performed by businesses. Generating ideas refers to the process of coming up with new concepts or innovations to improve products, services, or operations. Raising capital involves obtaining funds or financial resources to support business activities and growth. Keeping records involves maintaining accurate and organized documentation of financial transactions, inventory, customer information, and other relevant data to monitor and analyze business performance. Therefore, all three options are valid activities performed by businesses.

A mining company is considered an extractor because it engages in the extraction of resources from the earth. This involves the process of physically removing minerals, metals, or other valuable materials from the ground. The company's primary focus is on extracting these resources, rather than marketing, manufacturing, or wholesaling them.

A manufacturer is a business that takes natural resources and converts them into a consumer good. They are responsible for the production process, which involves transforming raw materials into finished products that can be sold to consumers. Manufacturers play a crucial role in the supply chain by adding value to the resources they use and creating products that meet the needs and demands of consumers.

The group that is in charge of making business decisions for a corporation is the Board of Directors. They are responsible for setting the overall direction and strategy of the company, making important decisions, and representing the interests of shareholders. The Board of Directors typically consists of a group of individuals who are elected by shareholders and have the authority to make key decisions regarding the company's operations, finances, and policies.

Custom manufacturing is the correct answer because it refers to a form of production where products are made to fit the specific needs and requirements of individual customers. This process involves tailoring the design, materials, and specifications of the product to meet the unique demands of each customer. Unlike mass production or bulk manufacturing, which produce large quantities of standardized products, custom manufacturing focuses on creating personalized and customized products for individual customers. Marketing, on the other hand, is a separate function that involves promoting and selling products or services to customers.

A corporation is a legal entity that is separate and distinct from its owners. This means that the corporation can own property, enter into contracts, and be sued in its own name. Corporations can have many owners, who are called shareholders. Shareholders own shares of stock in the corporation, which represent ownership in the company. Corporations can raise capital by issuing stock, which can be bought and sold on stock exchanges.

The parent company of a franchise is known as the franchisor. The franchisor is the entity that grants the rights to operate a franchise to the franchisee. They provide the business model, support, and brand recognition to the franchisee in exchange for fees and royalties. The franchisor typically has control over the operations and standards of the franchise system. "Franchisee" refers to the individual or entity that operates the franchise, while "Big Daddy" is not a commonly used term in the context of franchising.

A partnership does not issue stock to raise capital. Unlike corporations, partnerships do not have shareholders or issue stock. Instead, partnerships raise capital through contributions from the partners, borrowing funds, or reinvesting profits back into the business. Therefore, the statement is false.

A wholesaler buys goods in bulk from the manufacturer and sells them to retailers or directly to consumers, facilitating the movement of goods from the manufacturer to the end consumer. Marketers focus on promoting and selling products or services. Extractors are involved in extracting natural resources, and manufacturers produce goods from raw materials.