Business Chapter 6 Test

Cooperative

Owned and operated by members for the purpose of saving money on purchases of goods and services

stocks

To raise money for a corporation, you can sell _______, or shares of ownership

Partnership

which of the following is a business owned by two or more people who share the risks and awards.

False

A nonprofit organization must pay taxes.

False

A Sole Proprietorship is owned by several people

Corporation

A business owned by many people but treated by law as one person is called a ____________.

Partnership agreement

A contract that outlines the rights and responsibilities for a partnership is called a__________.

Small Business Association

A corporation is controlled by this.

Sole Proprietorship

About three-fourths of all businesses in the United States are organized as _____.

Unlimited Liability

A serious disadvantage of a sole proprietorship is that the owner has ______, or full responsibility for the company's debt.

Franchise

As a ________, Taco Bell has a contractual agreement to sell the company's products and services in a designated geographic area.

True

As your business expands, you can change the form of ownership.

Sole Proprietorship

Business owned by one person

Partnership

Business owned by two or more people who share the same risks and responsibilities.

Intermediary

Business that moves products between businesses or between businesses and the public

Processors

Changes raw materials into more finished products.

False

If you own more than half the stock of a corporation, you get to keep all the profits.

retailer

If you sell a product directly to the public you are considered a__________.

Limited Liability

Major advantage of a corportation

Cooperative

Ocean spray is an example of what type of organization?

Nonprofit organizations

Private hospitals, schools, and museums.

Services

Products of a skill of activity, such as hairstyling

Stock

Shares of corporate ownership

True

Stockholders own the corporation

Nonprofit organization

The american red cross is an example of which type of business

corporate Character

Which of the following is a license to run a Corporation?

Manufacturer

_____________ are businesses that make a finished product out of processed goods.

Wholesaler

a distributor

Producers

farmers, miners, and other types of ______, gather raw products in their natural state.