EGCC - BUS101 Intro to Business - Ch. 3-4 - Quiz

Which type of business organization experiences the least governmental regulation?

Sole proprietorship

How has terrorism affected global trade?

Terrorism has curtailed the liberal inflows of skilled and blue-collar workers.

When Linda McAnem began Stirya, a New York-based computer services company, she ran it as a sole proprietorship. As the business grew, she realized that she did not want to be personally liable for the business's debts and wanted her business accounts to be separate from her personal accounts. Therefore, she should have:

incorporated Stirya

What type of business organization generates the most total sales?

Corporation

Botswana produces diamonds, copper, nickel, soda ash, meat, and textiles, which it sells to the members of the European Union. To Botswana, the diamonds, copper, nickel, soda ash, meat, and textiles it produces are examples of:

Exports

_____ are goods and services that are made in one country and sold to other countries.

Exports

T/F: According to the principle of absolute advantage, each country should specialize in the products that it can produce most readily and cheaply and trade those products for products that foreign countries can produce most readily and cheaply.

False

T/F: Armenia had a favorable balance of trade in 2018 when it exported $800 million in goods and services and imported $1.5 billion.

False

T/F: Articles of incorporation usually specify the life of a corporation as a certain number of predetermined years.

False

T/F: Dissolving a partnership is easier than dissolving a sole proprietorship.

False

T/F: For partnerships to be legal, they must be established in writing.

False

T/F: Having a global vision simply means having a willingness to sell outside one's national borders if, and when, the opportunity arises.

False

T/F: If the sole proprietorship acquires a legal business name, the owner then has limited liability.

False

T/F: In a limited partnership, all of the partners have limited liability.

False

T/F: International trade-dependent jobs have grown at a rate three times the growth of U.S.-dependent jobs.

False

T/F: Registration procedures for incorporation are uniform from state to state across the U.S.

False

T/F: Telecommunications equipment manufacturers in the United States sell their products to people who live in Canada. To Canadians, the telecommunications equipment is an export.

False

T/F: The exchange rate is the interest rate that foreign banks receive when borrowing money from the United States.

False

T/F: The sole proprietorship is considered a legal entity; therefore, it is taxed separately from the owner.

False

Which of the following is an advantage of sole proprietor ownership?

Freedom from government regulation

The U.S. has one of the very few areas in the world where kaolin can be mined. Kaolin is a necessary ingredient in many products ranging from stomach medication to paper. The U.S.-produced kaolin is sold all over the world. Kaolin is a(n) _____ for the countries that purchase it.

Import

The United States buys copper from Chile's Escondido copper mine. The copper is used to make wiring for the U.S. telecommunications industry and for many other purposes. For the U.S., the copper is an example of a(n):

Import

The Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of:

Imports

_____ are products that are bought from one country for use in another just as the U.S. buys wood pulp and timber from Canada.

Imports

A company that has a global vision:

recognizes and reacts to international business opportunities

Of all forms of business ownership, corporations account for the largest share of both:

sales and profits

Jules Sylvester had always loved reptiles. When he was asked by a movie producer if he could locate some anaconda snakes for a movie, a business was born. Sylvester is the proud owner and operator of Reptile Rentals. The California-based business, which he started with no financial help from anyone, is often called on to provide "creepy, crawly" moments in the movies. Jules Sylvester is an example of a:

sole proprietorship

The form of business ownership that has the most difficulty in raising capital is the:

sole proprietorship

The form of business ownership that is easiest to dissolve is the:

sole proprietorship

The most common form of business organization is the:

sole proprietorship

The _____ is defined as the difference in value of a country's exports and imports over a period of time.

Balance of Trade

T/F: A disadvantage of a partnership is that any partner may have to pay all of the debts of the company regardless of who incurred the debts.

True

T/F: Mines in Colombia produce emeralds and sell them to jewelers in the United States. To Colombia miners, emeralds are an export.

True

T/F: One of the disadvantages of the sole proprietorship is that the owner has unlimited liability.

True

T/F: The corporation's board of directors elects the corporate officers.

True

T/F: The difference in value between a country's imports and exports is called its balance of trade.

True

T/F: The opposite of free trade is protectionism.

True

T/F: The tax that the United States imposes on imported carbon steel products is called a tariff.

True

Paul Hyatt owns and operates DeepClean, a Florida-based company that cleans up mold and mildew in homes and businesses. As the sole proprietor of the business, he has unlimited liability, which means:

he is fully liable for all business debts

Canadian logging companies sell timber in the United States. To the U.S., the timber is a(n)_____, and for Canadians, the timber is a(n) _____.

import; export