Business Organization

Which of the following is NOT one of the six basic activities that all businesses perform?

• raising capital
• buying goods and services
• conserving resources
• generating ideas

A ________ must name a board of directors that will make the major policy and financial decisions for the business.

• limited liability company
• proprietorship
• corporation
• limited liability partnership

A retailer is an example of a(n)

• extractor
• producer
• intermediary
• service business

The people who make the major policy and financial decisions in a corporation are the 

• investors
• board of directors
• managers
• owners

In what type of business organization is each owner personally liable for all business debts, even if the debts were created by other owners?

• corporation
• partnership
• proprietorship
• S corporation

Technology has allowed people to work fewer hours.

• True
• False

Over the past 50 years, the proportion of women who work outside the home has

• stayed almost the same
• grown very slowly
• declined slightly
• grown significantly

The easiest form of business to start and end is a(n)

• limited liability partnership
• S corporation
• franchise
• proprietorship

A(n) ______ is a short, specific written declaration of the reason a business exists and what it wants to achieve.

• statement of intent
• affirmation of purpose
• mission statement
• declaration of principle

Groups of people form consumer cooperatives to 

• purchase goods and services more cheaply than they could as individuals
• reduce the amount of property taxes that each member must pay
• generate a profit for each member of the group
• increase their political power in their community