Business Concepts Quiz

What is the key difference between general and limited partnerships?

• Only general partnerships involve more than one owner

• General partners have limited liability

• Limited partnerships allow some partners to have limited liability

• General partnerships are nonprofit

Who are the owners of a corporation?

• Managers

• Shareholders

• Employees

• Creditors

Which business type is best described as one owned by a single individual with unlimited liability?

• Corporation

• Cooperative

• Sole Proprietorship

• Limited Liability Company

Why might a business choose to become a limited liability company (LLC)?

• To avoid paying taxes

• To increase product sales

• To combine liability protection with simpler tax rules

• To raise money through stock sales

What is the difference between consumer goods and industrial goods in manufacturing?

• Consumer goods are cheaper

• Consumer goods are sold directly to consumers; industrial goods are used by businesses

• Industrial goods are sold in stores

• Industrial goods are always more expensive

How does a cooperative benefit its members?

• It gives all power to managers

• It charges members a fee

• It shares profits among members

• It limits member participation

Which scenario best illustrates the role of a retailer?

• A company assembling raw materials into final goods

• A store buying goods in bulk to resell to consumers

• A farmer growing produce for a cooperative

• A warehouse that stores goods temporarily

What distinguishes a nonprofit corporation from a for-profit business?

• It doesn't employ staff

• It earns revenue by selling shares

• It focuses on benefiting society over profit

• It pays higher taxes

Why is limited liability considered a major benefit of corporations?

• Owners are guaranteed profits

• Owners are not responsible for company debts beyond their investment

• Owners can avoid taxes

• Owners must manage operations

Which of the following sequences correctly outlines the flow of goods from manufacturer to consumer in a traditional model?

• Manufacturer → Consumer → Retailer

• Retailer → Wholesaler → Consumer

• Manufacturer → Wholesaler → Retailer → Consumer

• Consumer → Manufacturer → Retailer