Economics Chapter 3 Review

Front

Which of the following means limited life? When a business continues to exist, even after the business owner dies, quits, or sells the business , When a business ceases to exist when the business owner dies, quits, or sells the business , When a business owner is personally and fully responsible for all debts incurred by the business , When the business itself is responsible for all of its debt, and the business owners' assets are safe in case of debt

Back

When a business ceases to exist when the business owner dies, quits, or sells the business

Front

Which of the following means unlimited life? When a business continues to exist, even after the business owner dies, quits, or sells the business , When a business ceases to exist when the business owner dies, quits, or sells the business , When a business owner is personally and fully responsible for all debts incurred by the business , When the business itself is responsible for all of its debt, and the business owners' assets are safe in case of debt

Back

When a business continues to exist, even after the business owner dies, quits, or sells the business

Front

Which type of business has unlimited life? Options: Sole Proprietorship, General Partnership, Corporation, Limited Partnership

Back

Corporation

Front

Which type of business is considered its own legal entity? A Corporation, A Sole Proprietorship, A General Partnership, All of these are their own legal entities

Back

A Corporation

Front

If a corporation is "its own legal entity" that means it is...

Back

The same, legally, as a person. It can sue others and be sued

Front

Who is at the top of the corporate structure?

Back

The Stockholders

Front

What does a Chamber of Commerce do?

Back

They do all of these

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What does a Better Business Bureau do?

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Protects consumers and provides information on companies like records, complaints, and inquiries.

Front

To calculate a company's CASH FLOW, you need to take... Revenue - Expenses - Depreciation + Depreciation = Cash Flow

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Revenue - Expenses - Depreciation + Depreciation = Cash Flow

Front

If an expense is a "Noncash Charge" that means...

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The money stays in the firm rather than being paid to someone else