Business Organizations - Microeconomics

With respect to the circular flow model, businesses provide households with which of the following?

• taxes and interest

• labor and taxes

• goods, services, and incomes

• public goods and transfer payments

Which of the following is an advantage of a partnership? 

• they are hard to start
• management is hard between two or more people
•  partnerships can usually attract financial capital more easily than proprietorships.
• They are inefficient. 

Which of the following is a disadvantage of a corporation?

• it is easy to raise financial capital using stocks, bonds, or loans. 
•  the double taxation of corporate profits. Profits are taxed the first time when the corporation pays income taxes. The profits are taxed a second time when shareholders pay taxes on their dividends.
• it is easy to get a charter to start a corporation. 
• Owners and shareholders have total control over what happens with the business. 

Partners who are only responsible up to the extent of their investment

• limited partnership
• trading partnership
• non-trading partnership
• special partnership

A merger is

• Two business agreeing to becoming one new business

• One business buying shares in another business

• One business taking over control of another business

• Two businesses co operating with each other.

A corporation is a business for which ownership is divided into shares or stocks that may be bought and sold through a stock exchange.

• True

• False

The shareholders may receive a part of the company's annual profit, if there is one, in the form of a dividend.

• True

• False

Nike, Google and Apple are examples of.....

• Sole Proprietorships
• Partnerships
• Corporations
• Franchises

A holder or owner of stock in a company or corporation.

• stock market
• shareholder
• portfolio
• industry

Which of the following is the primary reason for the founding of a corporation by its founding owner or owners

• To limit liability

• For each member of the partnership to have their own company

• Capital for business growth and expansion

• All of the above