11) The outputs of a firm are its ________.
A) capital contributions
B) services provided to customers
C) delivery of products to customers
D) Two or more of these are correct.
12) A service company ________.
A) is a wholesale business
B) manufactures goods
C) is a retail business
D) None of these are correct.
13) The four types of business are ________.
A) service, wholesale, retail, and financial
B) for profit, nonprofit, wholesale, and retail
C) service, merchandising, manufacturing, and financial services
D) financial, manufacturing, service, and wholesale
14) A manufacturing business ________.
A) will lend money to customers
B) buys goods for resale
C) provides services to its customers
D) makes the products it sells
15) Financial services companies ________.
A) deal in services related to money
B) sell insurance to their customers
C) lend money to consumers to pay for cars and houses
D) All of these are correct.
16) A business in the form of a sole proprietorship ________.
A) is separate and distinct from its owner
B) is a separate legal entity
C) files its own tax return
D) is a company with a single owner
17) A partnership ________.
A) is a business owned by two or more individuals
B) has owners who are legally liable for everything the company does
C) may be organized under a partnership agreement
D) is all of these
18) The owners of a corporation are called ________.
A) shareholders
B) partners
C) stockholders
D) two or more of these
19) Which of the following is true about a corporation?
A) Corporations must have a minimum of two or more shareholders.
B) Each individual shareholder has individual legal responsibility for the corporation's actions.
C) Corporations are exempt from taxes; however, the shareholders are required to pay taxes on dividends received.
D) Managers of corporations can be held responsible for the actions of the corporation.
20) Stock sold for the first time is called ________.
A) issued
B) traded
C) capital
D) dividends