3.A business owned by a single individual who has unlimited liability for the firm's debt is called a:

Corporation.

Sole proprietorship.

General partnership.

Limited partnership.

4:A business owned by two or more individuals, with some owners having different amounts ofliability in the firm's debt, is called a:

S Corporation.

Sole proprietorship.

Limited partnership

General partnership

5.You win a contest for which you get to pick your prize.Your options are:

a. $1,000 in the first month, $2,000 in the second month, $3,000 in the third month and so on for one year;

b. $5,000 per month for one year;

c. $12,000 in the first month, $11,000 in the second month, $10,000 in the third month and so on for one year.

Which prize should you pick?

6.Agency problems exist in which forms of business ownership?

corporation

S corporation

sole proprietorship

partnership

7.The theory of ___________________ implies that information is quickly embedded in prices making it difficult for investors to "beat the market."

portfolio management

stock investing

efficient markets

asset allocation

8.Which of the following describes the basic function of money?

store of purchasing power

medium of exchange

standard of value

liquidity

9.The value of money results from:

rates set by the Federal Reserve

its purchasing power

its backing

10: The percentage of deposits that must be held as reserves is called

required reserves

excess reserves

required reserve ratio