1- The owners are liable or responsible for the debts of a company. This is known as_______.

Unlimited liability, Limited liability, Liability, None of the above

2- Recognized by law (Charter) as a separate legal entity. This is known as a__________

Answer: Partnership, Corporation, Sole Proprietorship, None of the above

3- Limited stock issues that have no voting share. These stock holders, however, are paid a dividend, if one is offered, before common stock holders. This is known as________.

Answer: Preferred Stock , Common Stock, Neither

4-Each partner has assumed a different element of control, investment and risk. This is called a___________.

Answer: General Partnership, Limited Partnership, Silent Partnerships, None of the above

5- _____________are corporations that have purchased the component businesses that make their product.

Answer: Horizontal Corporations , Vertical Corporations , Conglomerates , None of the above

6- A multinational corporation is a very large firm with a head office in one country and several branches operating overseas.

Answer: True, False

7- _____________nonprofit association of consumers dealing with services rather than goods. Examples include credit unions, and some insurance and credit agencies. A credit union, which is made up of employees from a particular company or government agency, receives its funds from members. In return, members earn interest on their deposits and may borrow money from the credit union. In most cases, they can borrow at better rates and more quickly than they could from for-profit banks or commercial loan companies.

Answer: Consumer Cooperative, Producer Cooperative , Professional Association, None of the above

8- A___________monopoly is not free from competition. If a business begins to make a great deal of money, competitors may come along in order to "share in the wealth". Also too, if a business keeps its prices too high, another business of the same type may come along with lower prices in order to elicit competition.

Answer: Technological, Geographic Government, Natural, None of the above

9- Geographical competition is a market scenario that includes a large number of autonomous and knowledgeable buyers and sellers of an identical product.

Answer: True, False

10- The following disadvantages: difficulty of raising capital, owner has unlimited liability, difficulty in finding quality employees, and limited life are from which of the following organizations?

Answer: Sole Proprietorship, Partnership, Corporation, None of the above

11- Most shares are common stock. Common stock holders are entitled to a voting share in the company and a portion of the dividend (a percentage of profits) if the company pays dividends to stockholders. This is known as Preferred Stock.

Answer: True , False

12- These are corporations that have purchased competing companies in an attempt to eliminate the competition and gain market share. It would be like IBM purchasing Compaq, Dell and Gateway. The FTC (Federal Trade Commission) watches this very carefully to ensure that anti trust laws are not violated. This is called__________.

Answer : Conglomerates, Horizontal Corporations, Vertical Corporations, None of the above

13- Consumer Cooperative is a nonprofit association of producers helping members sell or market products. In the US., most coops of this kind are made up of farmers. The coop helps the farmers sell their crops directly to central markets or to companies that use the members' products. Any savings that the producer coop makes in marketing costs go to its members.

Answer: True, False

14- _________is a market scenario that includes a large number of autonomous and knowledgeable buyers and sellers of an identical product. Yet none of which are capable of influencing the price.

Answer: Monopolistic, Competition , Pure competition, Neither

15- These monopolies are really special rights given to those who invent a new product or create some type of work. By provision of the Constitution, the United States government is allowed to grant patents to inventors guaranteeing them the right to manufacture, use, or sell any new improvement they have made. Inventions are covered for 17 years and designs can be patented for shorter periods. Art and literary works are protected in much the same way through a copyright. Microsoft's control of the Windows operating system is such an example. These are known as what______.

Answer: Geographic Monopoly , Technological monopoly, Natural Monopoly, Government Monopoly, None of the above

16- Resources are free to move from one industry to another. This is known as resource immobility.

Answer: True, False

17- Public Corporations are owned by an individual or group of individuals that do not offer ownership shares for purchase by the general public.

Answer: True, False

18- Which of the following is not a disadvantages of Multinationals?

Answer: Profits are returned to the overseas head office.

The multinational may force its overseas branches to buy supplies from the head office.

Help to improve the economies of developing nations .

May exploit the economy of the host nation by paying low wages to workers, by exporting scarce natural resources or by adversely interfering with the development of local businesses .

None of the above

19- The board of directors of a company appoints a President who is also known as the_________.

Answer: CFO Chief Financial Officer, CEO Chief Executive Office, CTO Chief Technology Officer, None of the above

20- Profits organizations are generally those business organizations that exist to serve some public need without the intent of making a profit.

Answer: True, False