CE 12b-d (Quiz Review)

What kind of business is best described by these statements?

• Corporation

• Proprietorship

• Partnership

• Cooperative

Which is an example of proprietorship?

• Roberta owns stock in a steel company. She receives a portion of the company's profits.

• Edward owns a restaurant. He is responsible for all of the restaurant's debts.

• Juan and Phillip own a bookstore. They are both responsible for the bookstore's debts.

• Janet and Miriam own a flower shop. They share equally in the shop's profits.

Which characteristics are true of the business shown in the picture?

• Shared risks and profits

• Varied amounts of investments by owners

• Two or more owners

• Risks and profits not shared

• One owner

The people with the ideas and courage to start a business are known as which type of resource?

• Entrepreneurship

• Natural

• Capital

• Human

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

• Entrepreneurship

• Proprietorship

• Partnership

• Corporation

Complete the circular flow diagram.

(Word Bank: Households, Resources, Businesses, Products, Government)

• Resources

• Own and sell resource, purchase products

• Businesses

• Final goods and services to be consumed

• Products

• Produce goods and services, purchase resources

• Households

• Capital, natural, human labor

• Government

• Collect taxes and pays for public goods and services

In the United States economy, what does the government provide to consumers and producers?

• Public goods and services

• Human Labor

• Interest

• Taxes

In the United States economy, there is a circular flow of what three things between households, businesses, and markets?

• Resources, goods, and services

• Resources, dividends, and taxes

• Resources, stocks, and bonds

• Resources, goods, and interest

Complete the chart about producers and consumers in a competitive economic system.

Producers: Who are they​ (a)  

Producers: How does market competition impact them ​ (b)  

Consumers: Who are they ​ (c)  

Consumers: How does market competition impact them ​ (d)  

• Creators of goods and services
• leads to innovation and increased productivity
• Purchaser of goods and services
• leads to lower prices and more choices

Individuals (households) own the resources used in production, sell the resources, and use the income —

• to increase consumption

• to provide public goods and services

• to purchase products

• to buy more resources