Which of the following statements is true about sole proprietorships?(1 point)

Question

Responses

The owner of the sole proprietorship has limited liability.
The owner of the sole proprietorship has limited liability.

The owner of the sole proprietorship must report to shareholders.
The owner of the sole proprietorship must report to shareholders.

A sole proprietorship is the simplest form of business organization.
A sole proprietorship is the simplest form of business organization.

A sole proprietorship can continue if the owner dies.
A sole proprietorship can continue if the owner dies.
Question 3
Which of the following is a characteristic of general partnerships?(1 point)
Responses

The partners have limited liability.
The partners have limited liability.

The partnership has limited life.
The partnership has limited life.

Each partner has different rights when representing the partnership.
Each partner has different rights when representing the partnership.

One person is the owner of a general partnership.
One person is the owner of a general partnership.
Question 4
What primary responsibility do the shareholders of a corporation have?(1 point)
Responses

electing a board of directors
electing a board of directors

providing their own labor for the production process
providing their own labor for the production process

hiring management to oversee production
hiring management to oversee production

overseeing production
overseeing production
Question 5
You have recently discovered that a local business has been designated 501(c)(3). Which of the following must be true?(1 point)
Responses

The business is a private foundation
The business is a private foundation

The business does not earn profits.
The business does not earn profits.

The business is a public charity.
The business is a public charity.

The business has federal tax exemptions.
The business has federal tax exemptions.
Question 6
Which of the following benefits do franchisees enjoy over other small business owners? Select the two correct answers(2 points)
Responses

Franchises have more control over the goods and services that they provide.
Franchises have more control over the goods and services that they provide.

Franchises have lower start-up costs than other small businesses.
Franchises have lower start-up costs than other small businesses.

Franchises benefit from the successful marketing provided by franchisors.
Franchises benefit from the successful marketing provided by franchisors.

Franchises have a lower 5-year failure rate than other small businesses.
Franchises have a lower 5-year failure rate than other small businesses.

Franchises are less expensive to operate than other small businesses.
Franchises are less expensive to operate than other small businesses.
Question 7
Which of the following could explain the relatively high wages earned by certain medical professionals, like nurse practitioners and physicians?(1 point)
Responses

The age of our population leads to a relatively low quantity of labor demanded at any given wage.
The age of our population leads to a relatively low quantity of labor demanded at any given wage.

The training and certifications required for these professions lead to a relatively high quantity of labor supplied at any given wage.
The training and certifications required for these professions lead to a relatively high quantity of labor supplied at any given wage.

The training and certification required for these professions lead to a relatively low quantity of labor supplied at any given wage.
The training and certification required for these professions lead to a relatively low quantity of labor supplied at any given wage.

The age of our population leads to a relatively high quantity of labor supplied at any given wage.
The age of our population leads to a relatively high quantity of labor supplied at any given wage.
Question 8
In the context of employment, which of the following is an example of a personal attribute?(1 point)
Responses

a bachelor’s degree
a bachelor’s degree

the ability to operate a forklift
the ability to operate a forklift

honesty
honesty

having worked for three years in customer service
having worked for three years in customer service
Question 9
The Bureau of Labor statistics identifies a trend in the labor market for doctors, where wages have increased significantly over the past several years. As a result of this trend, more individuals within the economy enter the labor market to become doctors. How does this influence wages and employment within the labor market?(1 point)
Responses

The market equilibrium wage will decrease, and the equilibrium quantity of labor will decrease.
The market equilibrium wage will decrease, and the equilibrium quantity of labor will decrease.

The market equilibrium wage will decrease, and the equilibrium quantity of labor will increase.
The market equilibrium wage will decrease, and the equilibrium quantity of labor will increase.

The market equilibrium wage will increase, and the equilibrium quantity of labor will decrease.
The market equilibrium wage will increase, and the equilibrium quantity of labor will decrease.

The market equilibrium wage will increase, and the equilibrium quantity of labor will increase.
The market equilibrium wage will increase, and the equilibrium quantity of labor will increase.
Question 10
Which of the following is the best way to learn the latest innovations and trends in the industry in which an individual works?(1 point)
Responses

attend a conference
attend a conference

find a mentor
find a mentor

seek it out in annual job-performance reviews
seek it out in annual job-performance reviews

relocate
relocate
Question 11
In arbitration, what do leaders of the labor union and the representatives of company management agree to?(1 point)
Responses

to bring a third party into their negotiations who has the ability to make binding decisions
to bring a third party into their negotiations who has the ability to make binding decisions

to negotiate with one another and to understand that management reserves the right to make binding decisions for both parties
to negotiate with one another and to understand that management reserves the right to make binding decisions for both parties

to bring a third party into their negotiations who will help them negotiate, but who does not have the power to make binding decisions.
to bring a third party into their negotiations who will help them negotiate, but who does not have the power to make binding decisions.

to negotiate with one another and to understand that the labor union reserves the right to make binding decisions for both parties
to negotiate with one another and to understand that the labor union reserves the right to make binding decisions for both parties
Question 12
Which of the following describes the primary difference between craft and industrial unions?(1 point)
Responses

Workers from labor-intensive fields (like manufacturing and agriculture) form industrial unions, not craft unions.
Workers from labor-intensive fields (like manufacturing and agriculture) form industrial unions, not craft unions.

Workers of a particular trade, not an entire industry, form an industrial union.
Workers of a particular trade, not an entire industry, form an industrial union.

Workers from labor-intensive fields (like manufacturing and agriculture) form craft unions, not industrial unions.
Workers from labor-intensive fields (like manufacturing and agriculture) form craft unions, not industrial unions.

Workers of a particular trade, not an entire industry, form a craft union.
Workers of a particular trade, not an entire industry, form a craft union.
Question 13
Explain one way in which hiring an additional worker could lead to an increase in human capital.(1 point)
Responses

Hiring an additional worker alone will lead to an increase in human capital.
Hiring an additional worker alone will lead to an increase in human capital.

Hiring an additional worker could lead to an increase in human capital if the worker were able to produce more output per number of labor hours worked than other workers.
Hiring an additional worker could lead to an increase in human capital if the worker were able to produce more output per number of labor hours worked than other workers.

Hiring an additional worker could lead to an increase in human capital if the worker were to bring new skills and experience that can be taught to other workers.
Hiring an additional worker could lead to an increase in human capital if the worker were to bring new skills and experience that can be taught to other workers.

Hiring an additional worker could lead to an increase in human capital if the firm were able to make a profit from the productivity of the new worker.
Hiring an additional worker could lead to an increase in human capital if the firm were able to make a profit from the productivity of the new worker.
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Answer 1

Here are the answers to each question based on the information provided:

Question 2: Which of the following statements is true about sole proprietorships?

• Answer: A sole proprietorship is the simplest form of business organization.

Question 3: Which of the following is a characteristic of general partnerships?

• Answer: The partnership has limited life.

Question 4: What primary responsibility do the shareholders of a corporation have?

• Answer: electing a board of directors

Question 5: You have recently discovered that a local business has been designated 501(c)(3). Which of the following must be true?

• Answer: The business has federal tax exemptions.

Question 6: Which of the following benefits do franchisees enjoy over other small business owners? Select the two correct answers.

• Answer: Franchises benefit from the successful marketing provided by franchisors.
  Franchises have a lower 5-year failure rate than other small businesses.

Question 7: Which of the following could explain the relatively high wages earned by certain medical professionals, like nurse practitioners and physicians?

• Answer: The training and certification required for these professions lead to a relatively low quantity of labor supplied at any given wage.

Question 8: In the context of employment, which of the following is an example of a personal attribute?

• Answer: honesty

Question 9: The Bureau of Labor statistics identifies a trend in the labor market for doctors, where wages have increased significantly over the past several years. As a result of this trend, more individuals within the economy enter the labor market to become doctors. How does this influence wages and employment within the labor market?

• Answer: The market equilibrium wage will decrease, and the equilibrium quantity of labor will increase.

Question 10: Which of the following is the best way to learn the latest innovations and trends in the industry in which an individual works?

• Answer: attend a conference

Question 11: In arbitration, what do leaders of the labor union and the representatives of company management agree to?

• Answer: to bring a third party into their negotiations who has the ability to make binding decisions

Question 12: Which of the following describes the primary difference between craft and industrial unions?

• Answer: Workers of a particular trade, not an entire industry, form a craft union.

Question 13: Explain one way in which hiring an additional worker could lead to an increase in human capital.

• Answer: Hiring an additional worker could lead to an increase in human capital if the worker were to bring new skills and experience that can be taught to other workers.

Feel free to ask if you have any more questions!