Economics Unit 4: Business and Labor

Which type of business has unlimited liability for its owner(s)?

• Corporation

• Sole Proprietorship

• Limited Liability Partnership

• Franchise

In a limited partnership, who assumes responsibility for day-to-day operations?

• All partners equally

• Limited partners

• General partner(s)

• Board of Directors

What is the primary goal of a labor union?

• Protect management from strikes

• Increase shareholder profits

• Negotiate better wages and working conditions

• Decrease the supply of labor

Why might a business choose to incorporate?

• To avoid paying taxes

• To limit personal liability

• To control all decision-making

• To ensure partnership continuity

What type of union represents workers from the same industry but with different job roles?

• Craft Union

• Industrial Union

• Arbitration Union

• Public Union

In arbitration, both parties agree to accept the decision of a third party.

• True

• False

Shareholders directly manage the day-to-day operations of a corporation.

• True

• False

Scenario: A franchise owner pays fees to a parent company in exchange for using their brand and business model. What is one advantage of running a franchise?

Scenario: A company hires several employees with advanced degrees to develop new technology. How is this likely to affect the company’s human capital and productivity?

A _________ is a business structure where two or more people share ownership, responsibilities, and profits.