government and business

An incompetent employee and a customer who shoplifts are both examples of this type of risk

human risk

Which of the following is a public good that is provided by government:

Interstate highways

Which of the following is a positive effect of government regulation:

Legal protection

Which of the following government actions is most likely to stimulate the economy:

Lowering tax rates

Regulatory agency monitors business environments for the safety and well being of its employees

Occupational Safety and Health Administration

A business owned by two or more persons who combine their capital, experience and abilities in order to share the risk of a chance to make a profit.

Partnership

This type of business risk means the possibility of loss or no loss

Pure

An advantage of sole proprietorship

Quick decision making

A business owned by one person

Sole Proprietorship

This type of business risk means there may be a loss, no loss, or a gain

Speculative

What is the purpose of government regulation of business activities that might cause air or water pollution?

To conserve the environment

Why does government set and collect taxes?

To help pay the expenses of government

You should file a DBA with the locality you plan to operate your business in order to protect the business name.

True

Determine whether the following statement is true or false: Government has become an active participant in the world of business.

True; government produces goods and services.

What is the government doing when it buys wheat to keep the price high enough for farmers to make a profit?

Using price supports

Possibility of loss or failure

business risk

Advantage of general partnership

combined capabilities

Government is involved in settling business disagreements through the use of

courts.

Negative effect on business of government regulation

expensive and inefficiency

Why is it important for business owners to weigh advantages and disadvantages of each form of business ownership

individual goals and needs differ

The best way to reduce disagreements that occur between two people who go into business together is to create a

partnership agreement

One way in which government protects private property is to provide

patents or copyrights.

One of the reasons that has caused government's role in business to expand is that

people's attitudes have changed.

Why do people start their own business

personal freedom and satisfaction, chance of increased income and self-esteem

Government can prevent unqualified persons from operating a business by

refusing to grant them a license.

Government tries to protect competition by

regulating monopolies.

The two main sources of revenue used to pay the costs of government regulation are

taxes and borrowing.

Government provides protection to business owners' property through the use of

zoning laws.

Government uses some of the tax money it collects from individuals and businesses to support public welfare programs. What is the benefit of these welfare programs to businesses in a private enterprise economy?

Funds received by recipients are spent in businesses.

An artificial being in the eyes of the law

Corporation

Which of the following was one of government's original roles in business:

Acting as a referee

An ice storm that caves in the roof of a bank is they type of business risk

Capital risk

Process of starting and managing your won business

Entrepreneurship

Which of the following regulatory agencies would be concerned with price fixing and unfair competitive practices:

Federal Trade Commission

Regulatory agency tests cosmetics in order to prevent that sale of unsafe products.

Food and Drug Administration

A restaurant fails to meet government regulations, so it loses its __________ and is no longer allowed to do business.

license

Disadvantage of Sole Proprietorship

limited capital

The goals of government are to protect the rights of individuals and businesses and to provide a stable environment, but the main goal of business is to

make a profit.

When government sets safety standards for the workplace, it is attempting to

minimize risks to employees.