Economics Quiz 2

A sole proprietorship can be best described as:

• Having a legal charter for operation from the government

• A sole owner has full legal responsibility

• The public are owners from stock sales

  
  

• Dividends must be announced quarterly for shareholders

A partnership can best be defined as:

• A business started by an entrepreneur

• A collaborative business owned by two or more entrepreneurs

• A business that is regulated by a board of directors

• A business that has offers stock options

Which of the following is a benefit of a franchise?

• Low start up costs

• Creativity and individuality of business vision

• Start off with “winning formula”

• Can sell stock to increase financial capital

What is a characteristic of a corporation?

• Ease of start up

• Multiple owners with limited liability

• Start off with “winning formula”

• A sole owner has full legal responsibility

Unions were organized to

• Help management control their workers

• Help management in the termination process

• Fight for workers rights, working conditions, and benefits

• All of the above

What is collective bargaining?

• Management always determines the pay and benefits of the workers

• Management right to hire workers who qualify for the position

• Business model where two people own and operate the business

• Workers right to negotiate with management for pay and benefits

Walmart works with local businesses to help them thrive.

• True

• False

Which of the following is NOT a franchise

• McDonald's

• Wendy's

• Taco Bell

• Windsor Diner

Which of the following is a franchise?

• Arby's

• KFC

• IHOP

• All of the above

What is an advantage of a partnership?

• One person assumes all the risk

• Business is run by two people who profit equally

• One person keeps all the money and the other person runs the business

• None of the above