Chapter 3 Quiz Review - Choices in Business

A

100

All nonmilitary people who are employed or unemployed

Labor force

200

List the four advantages of employee-owned businesses

1. Profits and earning distributed among employees 2. Since employees directly benefit from success of business, often there is improved productivity 3. Positive morale by employees 4. Democratic organization

300

List the three advantages of sole proprietorship.

1. Easiest and least expensive form of business to establish 2. Owner maintains complete control of the business, without have to consult others when making decisions 3. Owner controls all income of the business

400

According to the Labor Union Timeline link in your textbook, this act, passed in 1947, was a response to a large wave of strikes in the U.S. and worked to suppress the rights of unions.

Taft Hartley Act

500

List the three advantages of non-profit organization

1. Set up to benefit a cause that the founder has a strong passion for 2. Ability to bring in others with an interest in supporting the same cause 3. No tax liability

B

100

Requires minimal specialized skills and education - usually the operation of specific types of equipment; workers usually earn an hourly wage.

Semi-skilled labor

200

List the three disadvantages of general partnership

1. Share in profits with one or more partners 2. Each partner is responsible for all of the business's debts 3. Personal liability by all owners, which can result in owners losing personal assets in the event of bankruptcy or lawsuit

300

The practice of contracting with another company to do a specific job that would otherwise be done by a company’s own workers

Out sourcing

400

List the three disadvantages of non-profit organization

1. No profit potential for individual 2. Difficult to comply with requirements for non-profit 3. Must set up organization legally to avoid tax liabilty

500

List the three disadvantages of sole proprietorship.

1. More difficult to raise money to establish or expand business 2. Personal liability by owner, which can result in owner losing personal assets in the event of bankruptcy or lawsuit 3. Entire responsibility and control of business is on the shoulders of the owner

C

100

List the four advantages of limited liability partnership

1. All partners have limited personal liability 2. Subject to little government regulation 3. Can raise more capital than sole proprietorship due to greater assets being contributed 4. Each partner pays taxes on their share of the income; the business itself does not pay taxes

200

List five things labor unions primarily focus on.

negotiating wages, work rules, complaint procedures, benefits, workplace safety, and policies with company management

300

A job that requires specialized abilities and training but requires little supervision, describes which level of labor.

Skilled labor

400

List the three advantages of corporation.

1. Shareholder liability is limited to the amount they have invested in the corporation 2. Easier to raise/borrow money for expansion or other business purposes 3. Ability to choose to sell stock to finance company growth

500

The process in which union and company management meet to negotiate a new labor contract

Collective bargining

D

100

List the two disadvantages of employee-owned businesses

1. Raising capital is more difficult 2. Differing ideas on management direction

200

List the four advantages of general partnership.

1. Partnerships are easy to establish, though more difficult than a sole proprietorship 2. Share responsibility and risk with one or more partners 3. Partners may have complementary skills to assist in management of the business 4. Partners can make all business decisions

300

List the three disadvantages of corporation.

1. More complicated and expensive to set up 2. "Double taxation": The business itself it taxed, and the dividends paid to shareholders are taxed as well 3. Any shareholders will own a portion of the business and have a voice in how its operated

400

According to the Bureau of Labor Statistics, the unemployment rate for February 2019 was

3.8%

500

List the three disadvantages of a franchise

1. Fees for purchasing franchise 2. Ongoing royalty fees paid to franchisor 3. Limitations as to personal choices made by business owner, as requirements of franchise

E

100

A job that requires no specialized skills, education or training, workers normally earn an hourly wage

Unskilled

200

List the three advantages of a franchise

1. Training and assistance in setting up business provided 2. Financing by the franchisor may be available 3. Company support and national advertising support for business

300

Labor unions were brought about by working conditions during what era?

Industrial Revolution

400

List the three disadvantages of limited liability partnership.

1. Potential for conflict; can be difficult to solve 2. Partnership may not outlast the lives of those who started it 3. Multiple decisions regarding responsibilities must be made

500

Demands advanced skills and education; tend to be considered white-collar workers; receive a salary as opposed to an hourly wage

professional labor