RS Econ Ch 3 Review

True or False: Doctors, dentists, and lawyers often times form PARTNERSHIPS

• True

• False

True or False: H.J. Heinz had 57 different varieties/products of ketchup, hence he had 57 DIFFERENT names.

• True

• False

Answer explanation

He did NOT have 57 different names for his varieties of ketchup

True or False: In the early days, most labor unions were LOCAL

• True

• False

True or False: 90% of all business in America is done by CORPORATIONS

• True

• False

True or False: Someone setting up a lemonade stand would be an example of a SOLE-PROPRIETORSHIP

• True

• False

True or False: Many lawyers in America belong to the American LEGAL Association

• True

• False

Answer explanation

American BAR Association

True or False: Lands' End merged with K-Mart and J.C. PENNY'S

• True

• False

Answer explanation

Lands' End merged with K-Mart and Sears

True or False: The board of directors for a corporation are selected by the PRESIDENT of the company

• True

• False

Answer explanation

The board of directors is picked out by the SHAREHOLDERS of a company

Match the following

• Payment made for the use of borrowed $

• Dividend

• Written promise to repay amount borrowed

• Bond

• amount borrowed

• Interest

• All partners are equal

• Principal

• Check paid to shareholders (rep profits)

• General Partner

Match the following

• Ballot allowing shareholders to vote

• Proxy

• 2 businesses joining together as 1

• Limited Partner

• Money from sale or rental of product

• Merger

• At least 1 partner is not active

• Revenue