16.3 Section Review

What were expanding industries looking for?

• Ways to reduce costs

• Ways to improve production

• Ways to hire more employees

• Ways to expand their market

What did improvements in production require?

• More labor

• Better technology

• Investment money or capital

• Government support

What is the meaning of the word "capital" as shown in the learning material?

• A) A city where the government is located

• B) Investment money

• C) A type of building

• D) A form of transportation

In America's early years, most businesses were either _______ or _______.

• sole proprietorships

• partnerships

What advantage did sole proprietorships have in America's early years?

What is a sole proprietorship?

• A. A business owned by one person

• B. A business owned by two partners

• C. A business owned by a corporation

• D. A business owned by a group of investors

What is the term for businesses that are owned by two or more people?

• Corporations

• Sole proprietorships

• Partnerships

• Franchises

What is one advantage of partnerships in businesses?

• Decreasing capital in businesses

• Increasing capital in businesses

• Reducing the number of employees

• Eliminating competition

What is one potential disadvantage of partnerships in businesses?

• Increased competition

• Financial hardship for other partners due to one partner's failures

• Decreased market share

• Higher taxes

What is one benefit of sharing the losses in a partnership?

• It reduces the individual burden of losses

• It increases the overall profit

• It eliminates the need for capital

• It decreases the number of partners