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Question

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Question 1
Which of the following are benefits enjoyed by sole proprietorships? Select the two correct answers.(1 point)
Responses

earning goes directly to the owner
earning goes directly to the owner

easy access to credit
easy access to credit

control of decision-making
control of decision-making

unlimited liability
unlimited liability
Question 2
Which of the following statements is true about sole proprietorships?(1 point)
Responses

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

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

A sole proprietorship can continue if the owner dies.
A sole proprietorship can continue if the owner dies.

The owner of the sole proprietorship has limited liability.
The owner of the sole proprietorship has limited liability.
Question 3
Which of the following is a characteristic of general partnerships? (1 point)
Responses

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

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

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

hiring management to oversee production
hiring management to oversee production

overseeing production
overseeing production

providing their own labor for the production process
providing their own labor for the production process
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 has federal tax exemptions.
The business has federal tax exemptions.

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

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

The business does not earn profits.
The business does not earn profits.
Question 6
Which of the following benefits do franchisees enjoy over other small business owners? Select the two correct answers.(1 point)
Responses

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

Franchises are less expensive to operate than other small businesses.
Franchises are less expensive to operate than other small businesses.

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

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.
Question 8
The Bureau of Labor statistics identifies an occupational trend in the labor market for medical professionals, where wages have increased significantly over the past several years. As a result of this observed occupational trend, more individuals within the economy enter the labor market. How does this influence wages and employment within the labor market?(1 point)
Responses

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.

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 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 decrease, and the equilibrium quantity of labor will decrease.
The market equilibrium wage will decrease, and the equilibrium quantity of labor will decrease.
Question 9
In arbitration, what do leaders of the labor union and the representatives of company management agree to?(1 point)
Responses

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

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 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
Question 10
Which of the following describes the primary difference between craft and industrial unions?(1 point)
Responses

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.

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.

Answer 1

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

Question 1

Which of the following are benefits enjoyed by sole proprietorships?

• earning goes directly to the owner
• control of decision-making

Question 2

Which of the following statements is true about sole proprietorships?

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

Question 3

Which of the following is a characteristic of general partnerships?

• The partnership has limited life.

Question 4

What primary responsibility do the shareholders of a corporation have?

• 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?

• The business has federal tax exemptions.

Question 6

Which of the following benefits do franchisees enjoy over other small business owners?

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

Question 7

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

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

Question 8

The Bureau of Labor statistics identifies an occupational trend in the labor market for medical professionals, where wages have increased significantly over the past several years. How does this influence wages and employment within the labor market?

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

Question 9

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

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

Question 10

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

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

Feel free to ask if you need further clarification on any of the answers!