4: Section 3: Business Types (All Practice Checkpoints)
Hector takes orders for custom cakes and then bakes, decorate, and delivers them to events in his area
Operate
Ronnie's company produces cakes and cookies, so he has a team that focuses on cakes, and another team that focuses on cookies.
Product
Pablo keeps tracks of the amount of money earned by his company and compares it to the amount spent.
Finance
Dave is the only manager in his gift basket assembly company, and he manages all of his employees directly. Which type of organization does this best describe?
Flat
Kana works on the writing team of a large company, in a group of writers who share the responsibility for writing for many different purposes.
Function
Minh helps new employees with their hiring paperwork.
HR
Arpita works for a company that produces children's toy blocks, and her team applies the paint to the blocks just before they are completed.
Process
Emil drives an airport shuttle van.
Production
Joaquin pays for renters' insurance so that he will get paid if his belongings are destroyed in an accident or burglary.
Unsought good
Isaiah works for a car dealership that sells cars to individual buyers.
Retail
Robyn wants to turn her sole proprietorship as a tutor into a larger company with many owners and liability protection. She is willing to deal with double taxation and a complicated setup process.
C corporation
Match the examples in Column A to the types of goods in Column B. Omar buys a snack bag of chips that he noticed while waiting in line at the store.
Convenience impulse good
Jamie goes to the store to buy toothpaste.
Convenience staple good
Match the description in Column A to the business structure type in Column B. A company with multiple owners, limited liability, and higher taxes.
Corporation
Alonzo hires three different teams for selling men's, women's, and children's shoes.
Customer
Fatima is responsible for handling customer complaints.
Customer Service
Keesha decides to sell her indoor rock climbing center business to larger company.
Exit
Gabriel operates a machine that transports rocks in a rock quarry.
Extractive
Joanna goes fishing and catches a trout.
Extractive
Kevin works in a copper mine.
Extractive
Tanesha works on an oil drilling rig.
Extractive
As part of her business plan research, Tiara researches the target market for her outdoor survival classes.
Plan
Jackson maintains the company's computer system
IT
Kazuhiro opens a second kite store in a different town than the first one.
Improve
A company with multiple owners, limited liability, and pass-through taxation.
LLC
Isabel owns a chain of smoothie stands, and she hires a different manager for each stand.
Location
Classify the following example as extractive or manufacturing. Mariam operates a machine that weaves rugs.
Manufacturing
Jordan creates and sells hand-made tote bags.
Manufacturing
Kenji works in a mill that turns wheat into breakfast cereal.
Manufacturing
Vincent designs and prints greeting cards.
Manufacturing
_______________ is when most potential customers for a product already have something that satisfies that need or want. (Select the best answer.)
Market saturation
Kayla makes flyers to promote her dance classes.
Marketing
If you decided to be a franchisee and open a franchise of an existing company, which things would you expect the franchisor to provide for you? (Select four answers.)
Marketing methods, A business model, Trademarked materials, Brand image
Ming is starting a business with the purpose of fighting hunger in her community. She doesn't care about making a profit and is willing to reinvest any income back into her products and services.
Nonprofit corporation
Abby sees that vintage used clothing is becoming popular in her school, so she decides to start a business that buys and resells used clothes.
Operate
A company with multiple owners, personal liability, and pass-through taxation.
Partnership
Doug and Vanessa want to start a carpet cleaning business together and share the ownership and profits. They are not concerned about personal liability. They want the business to be fairly simple to set up.
Partnership
Which of the following is true in regard to taxation of a C corporation?
Pass-through taxation
Classify the following example as wholesaling or retailing. Nadia buys candy in bulk and resells individual packages of candy to her friends.
Retail
Petra orders a large quantity of hats printed with a popular sports team's logo, and then resells them individually in her sports store.
Retail
Sergio works at an electronics store that sells cell phones, cameras, and stereo equipment.
Retail
Cuba is starting an event planning company. He wants to protect his liability, and he would prefer pass-through taxation.
S corporation or LLC
Wanda reads reviews of different video cameras to decide what brand she wants, and then chooses the store with the lowest price on that item.
Shopping good
A company with one owner, personal liability, and pass-through taxation.
Sole proprietorship
Esperanza is starting a business by herself as an illustrator for magazines and children's books. She isn't concerned with personal liability, but she wants the business to be easy to set up.
Sole proprietorship
Adriana only buys doughnuts from her favorite local doughnut shop.
Specialty good
Shirina buys the equipment she needs for her bike repair service and signs a rental contract on a building.
Start
If a company is a pass-through entity, that means __________________. (Select the best answer.)
The company's income is not taxed as a separate entity. It is taxed only on the personal tax forms of its owners.
Adrian works for a company that buys jewelry at a low price and resells it to jewelry stores for a higher price.
Wholesale
Madison works for a company that buys paper from a paper manufacturer and then resells it to office supply stores.
Wholesale
Mai's company buys large quantities of grocery products and then repackages and sells them to grocery stores.
Wholesale
Pedro's company purchases jeans in bulk from the manufacturer and then resells them in smaller quantities to clothing stores.
Wholesale
