Business Test 2

capacity

A beverage bottling plant with only one conveyor belt and one local warehouse limits the company's ability to manufacture beverage products. The volume of manufacturing is called the bottling plant's _____.

partnership agreement

A(n) _____ is a written document that states all the terms of operating the partnership by spelling out the partners' rights and responsibilities.

autocratic

Graham is an emergency room doctor who must make many quick, life-and-death decisions and

Limited liability

What is the biggest advantage of a corporation?

Income is taxed at the personal rate (no special taxes)

What is the biggest advantage of a sole proprietorship?

conceptual skills

Which of the following is a basic category of management skills?

double taxation

Which of the following is a disadvantage of the corporate form of business ownership?

just-in-time system

Which of the following is a system designed to have only the right amounts of materials arrive at precisely the times they are needed?

They provide jobs

Which of the following is an important role played by small businesses in the economy?

sole proprietorship

Which of the following is the easiest and least expensive form of business to start?

Strengths; weaknesses

____ are positive internal factors that contribute to a company's success, whereas _____ are negative internal factors that inhibit the company's success.

Limited liability companies, or LLCs

_____ are flexible business entities that combine the tax advantages of a partnership with the personal liability protection of a corporation.

Planning

_____ involves establishing objectives and goals for an organization and determining the best ways to accomplish them.

Organizing

_____ is a process of arranging resources to carry out the organization's plans.

Decision-making

_____ skills involve the ability to define problems and select the best course of action.

organizing; controlling

The four major functions of management include planning, _____, leading, and _______.

inventory

The goods and materials kept in stock for production process or for sales to final customers are referred to as _____.

leading

The process of guiding and motivating people to work toward organizational goals is called _____

private

The stock of a(n) _____ corporation is held by only a few individuals or companies and is not publicly traded.

shareholders

The corporation is owned by its _____.

corporation

A _____ is a legal entity, distinct from any individual persons, with the power to own property and conduct business.

Technical

A person who knows how to operate a machine, prepare a financial statement, program a computer, or pass a football has _____ skills.

Administrative

Managers at all levels use _____ skills, including the abilities to make schedules, gather information, analyze data, plan, and organize.

They introduce new products

Of the following, which is an important role played by small businesses in the U.S. economy?

is independently owned and operated, is not dominant in its field, is relatively small in terms of annual sales, and has fewer than 500 employees

The U.S. Small Business Administration currently defines a small business as a firm that ________.

autocratic

The leadership style that is most associated with restricting employee decision making is: