Self Assessment Quizzes

CHAPTER 2: Section 1 Exploring the World of Business

	1.	The most common form of business organization is a

		a.	corporation
		b.	partnership
		c.	sole proprietorship
		d.	lemonade stand

	2.	A merchandising business

		a.	buys raw materials and transforms them into finished products
		b.	buys finished products and resells them
		c.	provides a service for a fee
		d.	all of the above

	3.	Money supplied by investors, banks, or owners of a business is called

		a.	capital
		b.	incurred expenses
		c.	secondary alignment
		d.	pin money

	4.	A corporation is a business organization that is recognized by law to

		a.	pay no tax
		b.	have a life of its own
		c.	have an active social life
		d.	have at least 3 owners

	5.	A business owned by two or more people is called

		a.	a corporation
		b.	looking for trouble
		c.	a partnership
		d.	venture capital

	6.	A free enterprise system allows businesses to

		a.	have their government choose their products
		b.	produce the goods and services they choose
		c.	buy goods at a discount
		d.	operate at a profit

	7.	One of the disadvantages of a sole proprietorship is

		a.	all the profits go to the owner
		b.	it is easy to set up
		c.	the owner has all the risks
		d.	there are few regulations to follow

	8.	Those who transform ideas for products or services into real-world businesses are known as

		a.	profit takers
		b.	accountants
		c.	entrepreneurs
		d.	organizers