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.
