Principles of Business Chapter 5 Review

The largest number of U.S. businesses have no employees other than the owner.

• true
• false

All businesses make products.

• true
• false

Nonprofit corporations do not have to pay corporate income taxes.

• true
• false

In a partnership, each partner is liable for all the debts of the business if the business fails.

• true
• false

Most businesses use a functional organizational structure.

• true
• false

What percentage of the U.S. workforce is made up of contingent workers?

• 1%
• 5%
• 20%
• 35%

Which of the following type of business is NOT a producer?

• pharmacy
• appliance factory
• coal mine
• chicken farm

Of the MAJOR forms business ownership in the United States, the most difficult to form is a

• partnership
• franchise
• corporation
• proprietorship

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

• stockholders
• owners
• board of directors
• parners

What is a business with 1 owner?

• proprietorship
• partnership
• corporation