Topic 5 Review- Bus. orgs & Labor

A disadvantage to operating a business as a partnership might be that

• they are relatively easy to form.

• it is easier to raise capital.

• the partners must get along and work well together.

• partners may provide complementary skills.

If two wireless phone companies merged to form one new company.

• Horizontal Merger

• Vertical Merger

• Conglomerate

• None of the above

What is the general concept behind right to work laws?

• Employees are prevented from receiving promotions if they are not in the union.

• Employees must join a union in order to be employed in certain workplaces.

• Employees are free to work in a union workplace without joining the union.

• Employees not in the union receive less pay than union workers in the same workplace.

When comparing the types of business organizations, which one protects owners the MOST from personal financial liability?

• Corporation

• Franchise

• Partnership

• Sole proprietorship

Collective bargaining is the

• practice used by employers to hire groups of laborers.

• practice used by employers to get the cheapest labor possible.

• idea that laborers working in groups are more productive in the workplace.

• idea that laborers acting together have greater success in negotiating with management.

Which of the following is an advantage of a sole proprietorship?

• It is very easy to raise capital.

• The business has a limited life span.

• The owners have unlimited liability for business debts.

• The owner receives all of the profit the company makes.

If a major electronics bought a professional sports team.

• Horizontal Merger

• Vertical Merger

• Conglomerate

• None of the above

Which of the following best describes the concept of unlimited liability?

• The shareholders are responsible for repaying the business debts.

• Personal assets of the business owner(s) can be used to repay the business debts.

• Portions of a company's profit paid to shareholders.

• The business owner(s) is/are not responsible for paying the business debts.

One of the main arguments against raising the minimum wage is that

• it would not make a difference either way

• it would increase taxes for higher paid people

• it would correct for a market failure

• it will increase unemployment

What is an advantage to operating a business as a partnership?

• The business has a limited life span.

• Partnerships often involve people with complementary skills.

• The owners have unlimited liability for business debts.

• Each partner can only lose the amount they have invested into the business.