A Trivia Quiz On Types Of Businesses!

33 Questions | Total Attempts: 361

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A Trivia Quiz On Types Of Businesses!

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Questions and Answers
  • 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