Chapter 8

Question 0

Dr. Ruiz shares equal responsibility and liability with her colleagues in their medical practice. Her practice is a

Answer 0

General partnership

Question 1

The family-owned Italian restaurant in your neighborhood is probably an example of a

Answer 1

General partnership

Question 2

Which of the following represents the percentage of all U.S. businesses that are corporations, and the percentage of all goods that those corporations sell?

Answer 2

20 percent of businesses; 90 percent of goods sold

Question 3

Which of the following I a disadvantage of a sole proprietorship?

Answer 3

Lack of permanence

Question 4

Everyday on your way to basketball practice you wave to Mr. Martin, who owns the neighborhood flower stand. Mr. Martin’s store is probably a

Answer 4

Sole proprietorship

Question 5

You decide to go to a consumer cooperative to buy supplies for your class party. Prices are cheaper there mainly because consumer cooperatives

Answer 5

Make larger purchases.

Question 6

Ellen stated a catering business, but soon decided that catering was too stressful for her. She could close her business relatively easily and return to school because the business was a

Answer 6

Sole proprietorship

Question 7

You are looking for a job with many fringe benefits. You therefore probably want to work for a

Answer 7

Corporation

Question 8

What is the major difference between a corporation and other kinds of businesses?

Answer 8

A corporation has a separate entity apart from that of the owners and workers

Question 9

What percentage if businesses are sole proprietorship?

Answer 9

75 percent

Question 10

What are the money and other valuables that belong to a corporation or partnership called?

Answer 10

Assets

Question 11

You are part-owner of NewBrands corporation because you

Answer 11

Own the company’s stock

Question 12

In a publicly held corporation

Answer 12

A large number if stockholders can buy and sell stock.

Question 13

You own a successful bicycle repair business. You are considering incorporating in order to

Answer 13

Raise money mere easily.

Question 14

Your running shoes were designed in the United States but assembled in Asia by a company called RunerPro. RunerPro is a

Answer 14

Multinational corporation

Question 15

Why is it easier for a partnership to borrow money and to hold good employees than it is for a sole proprietorship to do so?

Answer 15

A partnership has more personal stability and access to more money.

Question 16

If a general partnership fails, who is responsible for the debts?

Answer 16

All o the partners

Question 17

A joining of two or more businesses that are involved in different stages of producing the same good or service is called which of the following?

Answer 17

Vertical merger

Question 18

Which if he following is an advantage of a sole proprietorship?

Answer 18

It is least-regulated firm of business organization.

Question 19

The government usually allows conglomerates because they

Answer 19

Do not result in decreased competition

Question 20

What are organizations that are in businesses if benefiting society and operate like a business called?

Answer 20

Nonprofit organization

Question 21

What are royalties?

Answer 21

A percentage of a franchise’s earnings paid to the parent company

Question 22

What is a fringe benefit?

Answer 22

A payment other than wages or salaries

Question 23

Good wireless and better wireless merge to form best wireless. The federal government watches this merger carefully for evidence of a

Answer 23

Monopoly