CE.12 Business Organization

In which business model are profits kept by 1 person?

• Proprietorship

• Partnership

• Corporation

• Financial Institutions

Dan has $5,000. He wants to invest his money in the type of business that has the least amount of risk. What type of business should he invest his money?

• Proprietorship

• Partnership

• Corporation

• Liability

The soil and climate in Virginia is good for growing certain plants and bad for others. Because of this, farmers in Virginia will grow corn, peanuts, and cotton but not pineapples. This choice results in more efficient production and cheaper goods. What economic principle describes the farmers' choice to grow corn, peanuts, and cotton?

• Export

• Innovation

• Specialization

• Interest

Which innovation/invention has contributed most to the global flow of information, capital, goods, and services?

• Railroads

• Interstate highways

• Shipping

• Internet

• Horses

In which business model are the owners called stockholders?

• Proprietorship

• Partnership

• Corporation

• Financial Institutions

In which business model would an entrepreneur begin a business without any assistance?

• Proprietorship

• Partnership

• Corporation

• Financial Institutions

In which business model is the business organized by law to act as a legal entity (body) regardless of the number of owners?

• Proprietorship

• Partnership

• Corporation

• Financial Institutions

What is the difference between limited liability and unlimited liability?

• limited = can lose everything you own

  unlimited = can only lose your investments

• limited = only lose investments

  unlimited = can lose everything you own

• there is no difference

• they both have the same amount of risk

Some of the profits a business makes are often used to buy more —

• Goods and services

• Resources

• Taxes

• Interest

In the United States economy, what do individuals and businesses give/provide for the government?

• Goods and services

• Resources

• Taxes

• Interest