Chapter 21
Farming is most like which type of business?
A) manufacturing
B) wholesaling
C) service
D) extraction
What is manufacturing?
A resume is?
A) a written summary of work experience.
B) a detailed outline of job requirements.
C) an application form provided by a company.
D) a statement of intention.
What is a written summary of work experience?
A customer's current cash inflow is referred to as the customer's
A) capital
B) character
C) capacity
D) credit
What is capacity?
Pure risk is
A) the chance of loss without the chance of gain.
B) risk that holds the possibility of either gain or loss.
C) shifting risk to another party.
D) none of the above.
What is the chance of loss without the chance of gain?
In a sole proprietorship, how many people are responsible for the business?
A) one
B) one or more
C) at least two
D) any number
What is one?
Manufacturers of industrial goods typically sell to?
A) consumers
B) wholesalers
C) other manufacturers
D) service businesses
What are other manufacturers?
Three general types of patents are?
A) technology, medical, chemical
B) plant, design, utility
C) vehicles, artwork, buildings
D) none of the above
What are plant, design, and utility?
A customer's financial trustworthiness is referred to as the customer's
A) credit
B) character
C) capacity
D) capital
What is character?
The actual worth that property can be insured for is the
A) deductible
B) premium
C) replacement cost
D) cash value
What is cash value?
Which of the following is not an advantage of a sole proprietorship?
A) business income and costs are reported on the owner's personal tax return.
B) unlimited liability.
C) inexpensive to set up.
D) no partners to split profits with.
What is unlimited liability?
Small manufacturers of consumer goods sell
A) to wholesalers
B) to retailers
C) directly to consumers
D) all of the above
What is all of the above?
Starting with the date it is filed, a patent lasts for?
A) 10 years
B) 20 years
C) 30 years
D) 40 years
What is 20 years?
The management of the everyday activities that keep a business running is
A) distribution management
B) production management
C) operations management
D) financial management
What is operational management?
Insurance that protects a business in the event someone is injured on its premises or by its product or service is
A) worker's compensation insurance
B) property insurance
C) liability insurance
D) catastrophic insurance
What is liability insurance?
Which advantage(s) does a general partnership have over sole proprietorship?
A) limited liability.
B) it has a lower tax rate.
C) more than one person for financial backing.
D) all of the above
What is more than one person for financial backing?
Auto repair is an example of which type of business?
A) retailing
B) service
C) trade
D) manufacturing
What is service?
A word, phrase, or symbol used to identify a provider's service is known as a
A) trademark
B) copyright
C) service mark
D) patent
What is service mark?
An inventory system where virtually no inventory is stored is known as the
A) just-in-time inventory system
B) partial inventory system
C) periodic inventory system
D) perpetual inventory system
What is just-in-time inventory system?
Sifting risk to another party as is done when a business owner buys insurance, is called
A) pure risk
B) speculative risk
C) risk transfer
D) flexibility
What is risk transfer?
Sole proprietorships with employees are required to have
A) tax ID number
B) EIN
C) tax ID number and EIN
D) none of the above
What are tax ID number and EIN?
Which of the following professions require a license?
A) doctors
B) engineers
C) daycare providers
D) all of the above
What is all of the above?
Artistic or industrial creations of the mind are
A) derivatives
B) intangibles
C) intellectual property
D) all of the above
What are all of the above?
Obsolescence may occur when
A) excess inventory is kept
B) inventory is no longer desirable
C) inventory is no longer useful
D) all of the above
Three factors to consider in choosing a vendor are
A) credit, service, discounts
B) location, delivery, credit
C) price, quality, reliability
D) service, price, reputation
What are price, quality, and reliability?
Even if you are best friends with your business partner, you should always
A) incorporate
B) use a partnership agreement
C) register a sole proprietorship
D) none of the above
What is use a partnership agreement?