A Trivia Quiz On Types Of Businesses!
Settings
(32).jpg "A Trivia Quiz On Types Of Businesses!")
.
- 1.Which of the following are characteristics of sole proprietorships?
- A.
Limited life and unlimited liability
- B.
Limited life and limited liability
- C.
Unlimited life and unlimited liability
- D.
Unlimited life and limited liability
- 2.Which of the following is most likely to be a sole proprietorship?
- A.
A car manufacturer
- B.
A legal firm with four lawyers
- C.
A home builder
- D.
A dog grooming service
- 3.What often happens when the owner of a sole proprietorship dies?
- A.
The business closes down.
- B.
The business changes names.
- C.
The partner takes over the business.
- D.
The government takes over the business.
- 4.Which of the following characteristics is most likely to characterize someone who opens a sole proprietorship?
- A.
Risk-taking
- B.
Conformity
- C.
Caution
- D.
Government dependence
- 5.What is a general partnership?
- A.
A business in which none of the partners is responsible for the debts or liabilities of the other partners
- B.
A business in which one partner acts as the general manager
- C.
A business in which the partners share management and liabilities
- D.
A business in which at least one partner is not involved in management and is liable only for his or her investment
- 6.Who is most likely to look for limited partners?
- A.
Someone who needs money and management advice
- B.
Someone who wants to share liabilities and debts if the business fails
- C.
Someone who needs assistance with the day-to-day management
- D.
Someone who needs money but wants to retain control of the business
- 7.What is one of the biggest disadvantages of partnerships?
- A.
Potential for conflict between partners
- B.
Increased liability
- C.
Decreased resources
- D.
More government oversight
- 8.Which of the following is a major advantage of owning a franchise?
- A.
Having complete control over product
- B.
Selling a product that consumers know
- C.
Being free from all oversight
- D.
Decorating your business the way you want
- 9.What type of organization is a credit union?
- A.
Franchise
- B.
Service cooperative
- C.
Consumer cooperative
- D.
Nonprofit organization
- 10.What is a typical requirement of a consumer cooperative?
- A.
Paying a membership fee
- B.
Paying a licensing fee
- C.
Working without a salary
- D.
Maximizing profit
- 11.A group of city leaders decide to raise funds for a museum to honor the city's founder. What type of organization will they use for this purpose?
- A.
A consumer cooperative
- B.
A producer cooperative
- C.
A service cooperative
- D.
A nonprofit organization
- 12.What term is defined as an enterprise that produces goods or services, usually to make a profit?
- A.
Business organization
- B.
Unlimited liability
- C.
Stock
- D.
Vertical merger
- 13.What does the term-limited life mean?
- A.
The business does not continue if the owner leaves.
- B.
There are many regulations on business activities.
- C.
There is a ceiling on the number of business expenses.
- D.
The business is restricted in size.
- 14.What do many people consider to be the chief advantage of a sole proprietorship?
- A.
The owner has unlimited liability.
- B.
The owner keeps all the profits.
- C.
The owner has unlimited startup funds.
- D.
The owner does not have to obey labor laws.
- 15.What is a business owned and managed by a single person called?
- A.
Conglomerate
- B.
General partnership
- C.
Sole proprietorship
- D.
Limited partnership
- 16.What is the term for a business that is co-owned by two or more people who agree on how responsibilities, profits, and losses will be divided?
- A.
Partnership
- B.
Major partnership
- C.
Limited lifetime liability partnership
- D.
Limited liability corporation
- 17.What is the name for an individual who owns a share of a corporation and is entitled to part of its profits?
- A.
Stockholder
- B.
Director
- C.
Officer
- D.
President
- 18.Which of the following is a corporation that issues stock that can be freely bought and sold?
- A.
Nonprofit corporation
- B.
Sole proprietorship
- C.
Not-so-public corporation
- D.
Public corporation
- 19.What is it called when companies that produce the same product merge?
- A.
Horizontal merger
- B.
Conglomerate
- C.
Recreational merger
- D.
Multinational corporation
- 20.What is the name for a contract in which a corporation promises to repay borrowed money, plus interest, on a fixed schedule?
- A.
Share
- B.
Dividend
- C.
Stock
- D.
Bond
- 21.Angela opens a coffee shop, which she owns and where she sells a national brand of gourmet coffee. She pays licensing fees to do this. What kind of business it this?
- A.
A franchise
- B.
A cooperative
- C.
A nonprofit
- D.
A partnership
- 22.What is cooperative?
- A.
An institution that makes laws
- B.
A business that licenses the right to sell its products in a particular area
- C.
A business operated for the shared benefit of its owners, who are also its customers
- D.
A semi-independent business that buys the right to run a franchise
- 23.Which can be both an advantage and disadvantage of sole proprietorships?
- A.
The owner has total responsibility for all business decisions and financial obligations.
- B.
There are few government regulations placed on sole proprietorships.
- C.
A person who wants to open a sole proprietorship usually has limited funds.
- D.
The owner of a sole proprietorship keeps all the profits of the business.
- 24.Which of the following businesses is most likely to be a sole proprietorship?
- A.
Film studio
- B.
Lawn service
- C.
Kitchen appliance maker
- D.
Football helmet manufacturer
- 25.What is a dividend?
- A.
The part of the corporation owned by a stockholder
- B.
The part of the corporate profits paid to a stockholder
- C.
The part of the corporation most available to stockholders
- D.
The part of the corporate debt owed by the stockholders
- 26.Which of the following are advantages that corporations have over sole proprietorships and partnerships?
- A.
Limited life, limited liability
- B.
Limited life, greater access to funds
- C.
Unlimited life, limited liability
- D.
Unlimited liability, greater access to funds
- 27.What is it called when several companies producing unrelated products merge?
- A.
Horizontal merger
- B.
Vertical merger
- C.
Conglomerate
- D.
Multinational corporation
- 28.Which of the following is an example of a franchise?
- A.
A restaurant that is part of a national chain: McDonald’s; Yum!; Subway
- B.
A single gas station named Art's Fuel and Service
- C.
A mom-and-pop grocery store
- D.
One of a chain of three dry cleaners owned by the same man
- 29.If the owner of a sole proprietorship closes his business while owing many debts, what is likely to happen?
- A.
The creditors will forgive the debts because they were business related.
- B.
He will have to sell his house and use his savings to pay those debts.
- C.
He will deduct the debts on his income tax return and receive a big refund.
- D.
The bank will give him a business loan so he can pay debts and start over.
- 30.Why do corporations sell stock?
- A.
To raise money to invest in the business
- B.
To involve more people in running the business
- C.
To spread liability among a larger group
- D.
To gain a more diverse group of owners
- 31.What does double taxation mean?
- A.
The government taxes sole proprietors at higher rates.
- B.
The government taxes corporate profits and also shareholder dividends.
- C.
The government taxes both partners in a partnership.
- D.
Both the U.S. government and foreign governments tax multinational corporations.
- 32.A group of organic farmers join together to market their produce. What is this an example of?
- A.
Producer cooperative
- B.
Nonprofit organization
- C.
Franchise
- D.
Consumer cooperative
- 33.If a firm has no employees, what form of business organization is it most likely to have?
- A.
Partnership
- B.
Sole proprietorship
- C.
Limited partnership
- D.
Corporation
Back to top