Economics - Topic 5 Lessons 1(Revised) & 2 Key Terms Quiz

Money or equipment that belongs to an individual or a business.

• royalties

• assets

• liability

• partnership

What is the term for the structure of a company or firm?

• Sole proprietorship

• Business franchise

• Royalties

• Business organization

A firm that is owned by two or more individuals, where profits are split.

• Sole proprietorship

• Royalties

• Partnership

• Limited liability partnership

When a person is legally obligated to pay any debt, this is considered...

• liability

• fringe benefits

• royalties

• sole proprietorship

A __________ is a type of partnership where all partners have limited responsibilities.

• General partnership

• Limited liability partnership

• Business franchise

• Limited partnership

When you own a franchise, you pay _________ or a share of your profits to the parent company.

• revenue

• fringe benefits

• assets

• royalties

A business organization that is owned and managed by a single individual is called a(n)

• sole proprietorship

• entrepreneur

• business license

• partnership

As a sole proprietor, you may sometimes lack the resources to offer employees paid vacations or bonuses. These are sometimes referred to as:

• Royalties

• Assets

• Liability

• Fringe benefits

TRUE or FALSE:

A general partnership must have at least one general partner, but can have any number of limited partners.

• True

• False

One of the advantages of a sole proprietorship is that it is easy to start and end. Sole proprietors must obtain a(n) _________, which authorizes them to operate their business.

• application

• money

• business license

• assets