1. Chapter 6 & 7 Review

2. True or False Cookies are files of information about the user that a website creates.

3. True or False A corporation can be owned by as few as one person and as many as thousands of people.

4. True or False A corporation can change what it sells or produces without making changes to its charter.

5. True or False A corporation can make contracts and borrow money.

6. True or False A person must own at least ten shares of stock to be considered a stockholder.

7. True or False Stockholders decide when dividends are to be distributed.

8. True or False A stockholder has the same financial responsibility as a partner.

9. True or False Stockholders elect members of the board of directors.

10. True or False A certificate of incorporation should not include the purpose of the corporation.

11. True or False A closed Corporation is also called a Publicly Owned Corporation/

12. True or False A nonprofit corporation pays dividends to shareholders.

13. True or False Interstate commerce is defined as business operations and transactions that cross state lines.

14. True or False A monopoly exists as long as there are at least two producers.

15. True or False Prices are usually higher where a monopoly exists than where competition exists.

16. True or False The Sherman Antitrust Act allows competitors to agree to set the same selling prices on goods.

17. True or False It is legal to publish copyrighted work without permission of the copyright owner.

18. True or False The Nike “swoosh” is a trademark.

19. True or False Businesses are required by law to recall, repair, or stop selling defective products.

20. True or False It is a crime for any unauthorized person to access a computer system and view, use, or change data.

21. True or False In proportional taxation, those with lower incomes pay more dollars than those with higher incomes.

22. True or False A regressive tax is one in which the actual tax rate increases as the taxable amount drops.

23. True or False Licensing is a way to limit and control those who plan to enter certain types of business.

24. True or False In a corporation annual state tax is based on dividends of all stockholders.

25. Multiple Choice An official document giving power to run a corporation is a a.document certificatec.proxy b.charterd.shareholder certificate

26. Multiple Choice Ownership of a corporation is measured in a.dividendsc.shares b.chartersd.prospectuses

27. Multiple Choice A shareholder cannot a.transfer ownership to others b.vote for members of the ruling body of the corporation c.share in the net proceeds should the corporation go out of business d.create contracts for the corporation

28. Multiple Choice If the corporation fails, stockholders are responsible for a.only the amount invested in the corporation b.only the value of the assets of the corporation c.all of the debts of the corporation d.only the amount owed in dividends

29. Multiple Choice The actual management of a corporation is the function of its a.officersc.stockholders b.board of directorsd.employee teams

30. Multiple Choice The decision to distribute dividends is made by the a.stockholdersc.CFO b.board of directorsd.CEO

31. Multiple Choice What is true about a closely held corporation? a.All stockholders run the business. b.It does not need to obtain a state charter. c.It does not offer stock for general sale. d.It is not required to prepare reports for the state in which it operates.

32. Multiple Choice An advantage of corporations in relation to partnerships is that a.corporations have a tax advantage b.corporations have a limited life c.shareholders have unlimited financial liability d.shareholders can transfer ownership easily

33. Multiple Choice Once a corporation receives its charter, it can a.operate any kind of business chosen by the board of directors b.never change the purpose of the business c.add other purposes or activities to the business if the state approves the charter changes d.change the purpose of the business without state approval

34. Multiple Choice Two or more contractors who work together to build a retirement home are an example of a a.cooperativec.joint venture b.close corporationd.Subcharter S corporation

35. Multiple Choice A network of companies that form temporary alliances among themselves to take advantage of fast-changing market conditions is a a.limited liability companyc.nonprofit corporation b.virtual corporationd.cooperative

36. Multiple Choice A nonprofit corporation is an organization that a.pays taxes and exists to make a profit b.pays taxes and does not exist to make a profit c.does not pay taxes and does not exist to make a profit d.pays dividends to shareholders

37. Multiple Choice Which act forbids a business to require buyers to purchase other goods in order to get the product they want from that business? a.Clayton Actc.Sherman Antitrust Act b.Robinson-Patman Actd.Federal Power Act

38. Multiple Choice Which act outlaws unfair practices, such as false advertising? a.Clayton Actc.Sherman Antitrust Act b.Robinson-Patman Actd.Wheeler-Lea Act

39. Multiple Choice Selling tires at $40 each to one buyer and $43 each to another buyer is prohibited by the a.Wheeler-Lea Actc.FTC Act b.Sherman Antitrust Actd.Robinson-Patman Act

40. Multiple Choice The practice that allows a business to sell its assets to pay its debts is called a.liquidationc.licensing b.consolidationd.bankruptcy

41. Multiple Choice A trademark provides legal protection for a.a business’s name or symbolc.a new product or invention b.an author’s workd.a license

42. Multiple Choice FDA laws prohibit the sale of food that a.makes health claimsc.has not been washed b.carries no expiration dated.is improperly labeled

43. Multiple Choice A tax rate that increases as one’s income increases is called a a.progressive taxc.proportional tax b.regressive taxd.flat tax

44. Multiple Choice A patent is.... a.a set of rules made and set by the government. b.an agreement in which federal government five an inventor for 20 years c.law passes by state government d.a agreement in which state government gives an inventor sole right for 20 years

45. Multiple Choice The sales tax applied to gasoline and cigarettes is a(n) a.excise taxc.property tax b.income taxd.tariff

46. Multiple Choice The largest source of revenue for the federal government is a.income taxesc.excise taxes b.sales taxesd.property taxes

47. Matching a. Real Property Taxd.Income Tax b.Property Taxe.Excise Tax c.Sales Tax A ______ is a tax that applies only to selected goods or services, such as gas and cigarettes.

48. Matching a. Real Property Taxd.Income Tax b.Property Taxe.Excise Tax c.Sales Tax A ________ is a tax on material goods owned.

49. Matching a. Real Property Taxd.Income Tax b.Property Taxe.Excise Tax c.Sales Tax A ______ is a tax on the profits of a business and the earnings of individuals.

50. Matching a. Real Property Taxd.Income Tax b.Property Taxe.Excise Tax c.Sales Tax A ______ is a tax on real estate, which is land and buildings

51. Matching a. Real Property Taxd.Income Tax b.Property Taxe.Excise Tax c.Sales Tax A ______ is a tax levied on the retail price of goods and services at the time they are sold.

52. Open Questions What is one way to promote competition? What can unauthorized use of personal information turn into ___________________? What is the main reason the goverment levies taxes?