1. Unit 3
Econ EOC Review

2. Question 1
Which of the following is an advantage of a sole proprietorship?
A. No one is responsible if it fails.
B. It is the least-regulated form of business organization.
C. It is an easy way to make a lot of money.
D. It is easy to get financing to start one.

3. Question 1
Which of the following is an advantage of a sole proprietorship?
A. No one is responsible if it fails.
B. It is the least-regulated form of business organization.
C. It is an easy way to make a lot of money.
D. It is easy to get financing to start one.

4. Question 2
Why is it easier for a partnership to borrow money and to hold good employees than it is for a sole proprietorship to do so?
A. The more limited access to a partner’s personal funds make the business more careful.
B. The large number of partners makes it more likely that the business will be a success.
C. The larger number of partners means that people are easier to get along with.
D. A partnership has more personal stability and access to more money.

5. Question 2
Why is it easier for a partnership to borrow money and to hold good employees than it is for a sole proprietorship to do so?
A. The more limited access to a partner’s personal funds make the business more careful.
B. The large number of partners makes it more likely that the business will be a success.
C. The larger number of partners means that people are easier to get along with.
D. A partnership has more personal stability and access to more money.

6. Question 3
If a general partnership fails, who is responsible for the debts?
A. anyone who works for the partnership
B. all of the partners
C. only the most senior general partner
D. no one

7. Question 3
If a general partnership fails, who is responsible for the debts?
A. anyone who works for the partnership
B. all of the partners
C. only the most senior general partner
D. no one

8. Question 4
Which of the following is a disadvantage of a sole proprietorship?
A. lack of permanence
B. legal constraints
C. high taxes
D. difficult to start up

9. Question 4
Which of the following is a disadvantage of a sole proprietorship?
A. lack of permanence
B. legal constraints
C. high taxes
D. difficult to start up

10. Question 5
What are organizations that are in the business of benefiting society and operate like a business called?
A. trade associations
B. producer cooperatives
C. nonprofit organizations
D. limited partnerships

11. Question 5
What are organizations that are in the business of benefiting society and operate like a business called?
A. trade associations
B. producer cooperatives
C. nonprofit organizations
D. limited partnerships

12. Question 6
Your running shoes were designed in the United States but assembled in Asia by a company called RunnerPro. RunnerPro is a
A. general partnership.
B. multinational corporation.
C. trade association.
D. producer cooperative.

13. Question 6
Your running shoes were designed in the United States but assembled in Asia by a company called RunnerPro. RunnerPro is a
A. general partnership.
B. multinational corporation.
C. trade association.
D. producer cooperative.

14. Question 7
Your uncle owns a convenience store that has branches nationwide. His store is an example of a
A. business franchise.
B. multinational.
C. professional organization.
D. consumer cooperative.

15. Question 7
Your uncle owns a convenience store that has branches nationwide. His store is an example of a
A. business franchise.
B. multinational.
C. professional organization.
D. consumer cooperative.

16. Question 8 What is a fringe benefit? A. a cash payment for casual work
B. a business other than sales or marketing
C. a payment other than wages or salaries
D. an accounting term meaning profits

17. Question 8 What is a fringe benefit? A. a cash payment for casual work
B. a business other than sales or marketing
C. a payment other than wages or salaries
D. an accounting term meaning profits

18. Question 9
What term means “an establishment formed to carry on commercial enterprise”?
A. nonprofit organization
B. labor union
C. corporation
D. business organization

19. Question 9
What term means “an establishment formed to carry on commercial enterprise”?
A. nonprofit organization
B. labor union
C. corporation
D. business organization

20. Question 10 Sole proprietorships A. are complicated to establish.
B. make up about 6 percent of all businesses.
C. are the most common form of business in the United States.
D. offer owners little control over operations.

21. Question 10 Sole proprietorships A. are complicated to establish.
B. make up about 6 percent of all businesses.
C. are the most common form of business in the United States.
D. offer owners little control over operations.

22. Question 11
Ellen started a catering business, but soon decided that catering was too stressful for her. She could close her business relatively easily and return to school because the business was a
A. producer cooperative.
B. sole proprietorship.
C. general partnership.
D. closely held corporation.

23. Question 11
Ellen started a catering business, but soon decided that catering was too stressful for her. She could close her business relatively easily and return to school because the business was a
A. producer cooperative.
B. sole proprietorship.
C. general partnership.
D. closely held corporation.

24. Question 12
All of the following are advantages of incorporation EXCEPT
A. the responsibility for the business is shared
B. capital is easier to raise than in other business forms
C. corporations face double taxation
D. corporations have more potential for growth

25. Question 12
All of the following are advantages of incorporation EXCEPT
A. the responsibility for the business is shared
B. capital is easier to raise than in other business forms
C. corporations face double taxation
D. corporations have more potential for growth

26. Question 13 What is “a certification of ownership of a corporation”?
a. control
b. stock
c. public
d. affidavit

27. Question 13 What is “a certification of ownership of a corporation”?
a. control
b. stock
c. public
d. affidavit

28. Question 14
What term means “an establishment formed to carry on commercial enterprise”?
A. nonprofit organization
B. labor union
C. corporation
D. business organization

29. Question 14
What term means “an establishment formed to carry on commercial enterprise”?
A. nonprofit organization
B. labor union
C. corporation
D. business organization

30. Question 15 What is “liability”?
a. when one person tells another a lie to protect their company
b. piece of paper showing all debts
c. when you are legally bound to pay all debts
d. when the business organization can pay its own debts

31. Question 15 What is “liability”?
a. when one person tells another a lie to protect their company
b. piece of paper showing all debts
c. when you are legally bound to pay all debts
d. when the business organization can pay its own debts

32. Question 16
Which type of partnership has all partners sharing in at least some of the liability?
a. general
b. limited
c. limited liability
d. none of the above

33. Question 16
Which type of partnership has all partners sharing in at least some of the liability?
a. general
b. limited
c. limited liability
d. none of the above

34. Question 17
Which of the types of business organizations is the most regulated?
a. corporation
b. partnership
c. nonprofit
d. sole proprietorship

35. Question 17
Which of the types of business organizations is the most regulated?
a. corporation
b. partnership
c. nonprofit
d. sole proprietorship

36. Question 18 A business franchise
(a) attempts to improve the image and working conditions of people in a particular occupation.
(b) operates without the aim of profit.
(c) is a semi-independent business tied to a parent company.
(d) is not required to pay income taxes.

37. Question 18 A business franchise
(a) attempts to improve the image and working conditions of people in a particular occupation.
(b) operates without the aim of profit.
(c) is a semi-independent business tied to a parent company.
(d) is not required to pay income taxes.