Module 4 Test Review

This type of business type provides intangible products (e.g. repair shops, banks, accounting firms, law firms.)

• Service

• Manufacturing

• Merchandising

• Hybrid

This type of business buys products with the intention of using them as materials in making a new product. Combines raw materials, labor, and factory overhead in its production process. Manufactured goods are sold to customers.

• Service

• Manufacturing

• Merchandising

• Hybrid

This type of business can be classified in more than one type of business; may be classified according to their major business interest. For example, a restaurant combines ingredients in making a fine meal (manufacturing), sells a cold bottle of refreshment (merchandising), and fills customer orders (service).

• Service

• Manufacturing

• Merchandising

• Hybrid

This type of business buys products at wholesale price and sells the same at retail price; sells a product without changing its form (e.g. grocery stores, convenience stores, distributors, other resellers)

• Service

• Manufacturing

• Merchandising

• Hybrid

This type of good can be touched and seen by the consumer

• tangible

• intangible

• service

• product

Business forms that have unlimited personal liability include

• Sole proprietorships and partnerships

• sole proprietorships and corporations

• partnerships and corporations

• corporations and franchises

The business form that can issue stocks is a

• corporation

• partnership

• sole proprietorship

• franchise

Profit is equal to 

• total revenue divided by total cost.

• per unit revenue minus total cost.

• total revenue plus total costs.

• total revenue minus total cost.

A business that is owned by one person and is easy to form is called a

• franchise

• partnership

• LLP

• sole proprietorship

A form of business in which one owner uses the model, methods and trademarks of another is a

• cooperative

• franchise

• LLP

• partnership