Labor & Business Quiz

What is the labor force?

• The total number of people employed by the government

• The total number of people who are of working age, able and willing to work

• Only those people working in the agricultural sector

• All the people in a country

Which of the following is NOT a type of business organization?

• Sole proprietorship

• Partnership

• Corporation

• Autocracy

What is a sole proprietorship?

• A business owned by two or more people

• A business owned by shareholders

• A business owned and operated by one person

• A business owned by the government

What is the primary goal of a corporation?

• To provide employment

• To make a profit

• To pay taxes

• To offer free services

Which of the following is a characteristic of a partnership?

• Shares are sold to the public

• It has a single owner

• Profits are shared among partners

• It cannot be sued

What does unemployment rate measure?

• The percentage of the total labor force that is employed

• The percentage of the total population that is employed

• The percentage of the total labor force that is unemployed but actively seeking employment

• The percentage of people under the age of 16 who are employed

What is a limited liability company (LLC)?

• A business structure where the owners are personally responsible for the company's debts

• A business structure where the owners have limited personal liability for the debts and actions of the LLC

• A business owned by a single individual with unlimited liability

• A government-owned corporation

Which of the following best describes a cooperative?

• A business owned and managed by its workers or customers, who share the profits

• A business that operates for the sole purpose of making profits for its shareholders

• A business owned by a single individual

• A business that is managed by the government

What is the main advantage of a sole proprietorship?

• The owner enjoys limited liability

• Profits do not have to be shared

• It is easy to raise capital

• The business has a perpetual existence

Which of the following is a disadvantage of a corporation?

• Limited liability for its owners

• Profits are taxed as the personal income of the shareholders

• Difficulty in transferring ownership

• Double taxation, where the corporation's profits are taxed, and shareholders are also taxed on dividends