Chapter 6

Income from a corporation is taxed twice.

False

An example of a franchise is

a McDonald's restaurant

An organization that is owned and operated by its members

cooperative

Retailers get their goods from

dealers

The business or art of money management

finance

Nonprofit organizations

focus on providing services rather than making a profit.

A contractual agreement to use the name and sell the products or services of a company in a designated geographic area

franchise

A business that moves goods from one business to another

intermediary

The process of planning, pricing, promoting, selling, and distributing ideas, goods, and services is known as

marketing.

A type of business that focuses on providing a service, not on making a profit

nonprofit organization

In order to start a corporation, the first thing one must do is

obtain a corporate charter from the state government.

Processed goods include all of the following except

organic vegetables

The process of creating, expanding, manufacturing, or improving goods and services

production

Cooperatives were formed to a. save money on the purchase of certain goods and services.

save money on the purchase of certain goods and services.

The most common type of business in the United States are

sole proprietorships.

An advantage of a partnership is

that the partners make decisions together; that banks are often more willing to lend money to a partnership than to a sole proprietorship; that the partners often bring different skills and talents to the business.

One disadvantage that corporations face is

the cost of raw materials

Unlimited liability means

the owner is responsible for the company's debts.

A major disadvantage of owning a sole proprietorship is that the owner has limited liability.

False

About half of all businesses in the United States are sole proprietorships.

True

An advantage of owning a partnership is that banks are more often more willing to lend money to partnerships than to sole proprietorships.

True

There are three (3) main types of business organizations: sole proprietorships, partnerships, and corporations.

True

The process of achieving company goals by planning, organizing, directing, controlling, and evaluating the effective use of resources is called

management.

The process that involves getting consumers to buy a product or service

marketing

The buying and reselling of goods that have already been produced

procurement

Consumers usually deal directly with

retailers

A dividend is

the cost of a share of stock.

The owner is responsible for the company's debts

unlimited liability

Also known as distributors

wholesaler

Companies benefit when all functional areas

work together