Chapter 5 Quiz

During a recession, which of the following is most likely to happen to employment levels?

• They increase dramatically

• They remain the same

• They decrease

• They double

What does the unemployment rate data measure?

• The number of new jobs created

• The percentage of people who are not working but seeking jobs

• The total number of businesses that closed

• The number of people employed part-time

Which of the following best describes a contingent worker?

• A person who owns a business

• A person hired for a long-term full-time job

• A temporary or part-time employee

• A government employee

How might a community be affected by the opening of several new businesses?

• It will cause unemployment to rise

• It will reduce competition

• It can lead to increased job opportunities and economic growth

• It only affects business owners

Which form of business is the most common in the U.S.?

• Corporation

• Partnership

• Sole proprietorship

• Franchise

Which type of business generates the most revenue in the U.S.?

• Sole proprietorship

• Corporation

• Cooperative

• Franchise

A written agreement between partners in a business is called a:

• Partnership agreement

• Franchise contract

• Operating license

• Articles of incorporation

Articles of incorporation are used to:

• Register a sole proprietorship

• Close a business

• Establish a corporation legally

• Apply for a loan

Which of the following is true about a franchise?

• It cannot use another company’s name

• It is always owned by a single individual

• It operates under a parent company’s brand and systems

• It is a type of partnership

How does a joint venture differ from a traditional partnership?

• It is owned by one person

• It is limited to non-profit organizations

• It is a temporary partnership for a specific project

• It must include more than three people