Question 1

A sole proprietorship is the type of business that has ________ government rules and regulations affecting it.

Accepted Answer

Sole proprietorships are subject to fewer government rules and regulations compared to other business structures, such as corporations or partnerships, because they are owned and operated by a single individual and are not considered separate legal entities.

Question 2

Juliana,Gabrielle,and Marcela want to start a business they are the only owners and the company does not issue stock.The type of business they want to start is a

Accepted Answer

Juliana, Gabrielle, and Marcela are all owners, which means they are sharing profits and losses. This is characteristic of a partnership, not a sole proprietorship, which has a single owner, or a corporation, which issues stock.

Question 3

In a partnership,the owners of the business and the business are ________,and in a sole proprietorship,the owner of the business and the business are ________.

Accepted Answer

In a partnership and a sole proprietorship, the owners and the business are not considered separate legal entities. This means the owners are personally liable for the debts and obligations of the business.

Question 4

Public companies ________ and private companies ________.

Accepted Answer

Public companies sell stock in financial markets to raise capital and are subject to regulatory oversight, while private companies do not sell stock in financial markets and are privately owned.

Question 5

What does unlimited liability mean?

Accepted Answer

Unlimited liability means that the owners of a business are personally responsible for paying any expenses or debts incurred by the business, even if it means using their personal assets to cover those costs.

Question 6

The typical firm in many industries has become ________ over the past 100 years,and efficiently organizing production has become ________.

Accepted Answer

The answer of The typical firm in many industries has...

Question 7

How do a partnership and a corporation differ?

Accepted Answer

The answer of How do a partnership and a corporation...

Question 8

Damian wants to start a business where he is the only owner and the company does not issue stock.The type of business Damian wants to start is a

Accepted Answer

A sole proprietorship is a business structure in which the owner is the only individual responsible for the company's finances and operations. This means that Damian would have complete control over the business, and would not have to answer to any other shareholders or partners. Additionally, a sole proprietorship does not issue stock, unlike a corporation. Therefore, the most appropriate choice for Damian's desired structure would be a sole proprietorship.

Question 9

Which of the following must a firm in a market economy do today to succeed?

Accepted Answer

A firm in a market economy must produce new or better goods or services to stay competitive and attract new customers. It must also efficiently organize production to minimize expenses and make the best use of resources. Additionally, producing existing goods and services at a lower cost is important for staying profitable in a competitive market environment. Therefore, all three options are important for a firm's success in a market economy.

Question 10

Which of the following is an advantage of starting a new business as a partnership?

Accepted Answer

The answer of Which of the following is an advantage...

Question 11

In a typical year,new small firms create ________ jobs.

Accepted Answer

According to data from the Small Business Administration (SBA), new small firms create approximately 3.3 million jobs in a typical year.

Question 12

As a form of business,a sole proprietorship

Accepted Answer

A sole proprietorship is a business owned and operated by a single individual, which means that it cannot issue stock. Limited liability is a feature of other business entities such as corporations and LLCs. Furthermore, sole proprietorships tend to have fewer government rules and regulations compared to other forms of business.

Question 13

A corporation is limited to how many owners?

Accepted Answer

There is no limit to the number of owners a corporation can have. A corporation can issue as many shares as it wants, and those shares can be publicly traded on a stock exchange, allowing anyone to become an owner.

Question 14

________ of people work at firms that have 50 or more employees.

Accepted Answer

According to the Small Business Administration, more than 75 percent of American workers are employed by firms that have 50 or more employees.

Question 15

A sole proprietorship is limited to how many owners?

Accepted Answer

A sole proprietorship is a type of business entity where there is only one owner.

Question 16

A ________ is owned by its stockholders.

Accepted Answer

Corporations are owned by their stockholders, while sole proprietorships are owned by an individual and partnerships are owned by two or more individuals. Therefore, options A and C are incorrect.

Question 17

Assume you and your best friend set up a partnership and your lawyer tells you that as the owners,you could each stand to lose your personal wealth if the business goes bankrupt.This means a partnership

Accepted Answer

The lawyer's statement means that the partnership faces unlimited liability, as both partners' personal wealth could be at risk if the business goes bankrupt. Limited liability would mean that the partners' personal assets are protected, and only the assets of the business itself are at risk. Therefore, option B is correct.

Question 18

A partnership is limited to how many owners?

Accepted Answer

There is no limit to the number of owners in a partnership.

Question 19

Arturo wants to start a business where he is the chief executive officer and the company does issue stock.The type of business Arturo wants to start is a

Accepted Answer

Arturo wants to issue stock, which is only possible in a corporation. Sole proprietorships and partnerships do not issue stock.

Question 20

The owner or owners control the day-to-day activities of which of the following types of business?

Accepted Answer

In partnerships and sole proprietorships, the owner or owners are directly involved in the day-to-day operations and decisions of the business. Corporations, on the other hand, are managed by a board of directors and officers, not directly by the owners (shareholders).

Quiz 6: Firms, the Stock Market, and Corporate Governance