Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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People born between 1946 and 1964 are generally referred to as a. | bohemians. | b. | Generation X. | c. | Generation
Y. | d. | baby
boomers. | | |
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2.
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Over
the next decade, which of the following groups will experience a DECLINE in employment growth rates
in the United States? a. | Asian-American workers | b. | Hispanic-American workers | c. | white workers | d. | African-American
workers | | |
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3.
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What
percentage of the U.S. workforce is made up of contingent workers? a. | 1
percent | b. | 5 percent | c. | 20
percent | d. | 35 percent | | |
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4.
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About
what percentage of U.S. businesses employ 100 or more workers? a. | 1
percent | b. | 5 percent | c. | 20
percent | d. | 35 percent | | |
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5.
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Every
business performs all of the following activities EXCEPT a. | maintaining
business records. | b. | manufacturing products. | c. | raising
capital. | d. | buying goods and services. | | |
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6.
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Which
of the following type of business is NOT a producer? a. | pharmacy | b. | appliance factory | c. | coal
mine | d. | chicken
farm | | |
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7.
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Which
major category of business is the fastest-growing in the U.S. economy? a. | producer | b. | manufacturer | c. | intermediary | d. | service business | | |
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8.
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Business activities start with a. | service businesses. | b. | producers. | c. | intermediaries. | d. | marketers. | | |
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9.
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Proprietorships a. | are owned and controlled by two or more people who have entered
into a written agreement. | b. | account for the largest percentage of business revenues in the
U.S. | c. | are the easiest
form of business to start. | d. | protect the liability of the business owners to only the amount
of money they have invested directly in the business. | | |
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10.
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Of
the MAJOR forms business ownership in the U.S., which is the LEAST common? a. | partnership | b. | franchise | c. | corporation | d. | proprietorship | | |
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11.
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Which
of the following would typically NOT be specified in a partnership agreement? a. | the business
name | b. | the number of
hours per week the business will operate | c. | the amount of investment of each
partner | d. | the level of authority each partner
has | | |
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12.
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A
written legal document defining ownership and operating procedures and conditions for a corporation
is called the a. | corporate code
of ethics. | b. | partnership agreement. | c. | articles of
confederation. | d. | articles of incorporation. | | |
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13.
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The
people who make the major policy and financial decisions for a corporation are called
the a. | stockholders. | b. | owners. | c. | board of
directors. | d. | partners. | | |
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14.
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A
unique business organized by two or more other businesses to operate for a limited time and for a
specific project is called a a. | joint venture. | b. | limited
liability partnership. | c. | limited liability company. | d. | nonprofit
corporation. | | |
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15.
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A(n)
____ is a written contract granting permission to operate a business to sell products and services in
a set way. a. | licence | b. | cooperative agreement | c. | partnership
agreement | d. | franchise | | |
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16.
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A
precise statement of results a business expects to achieve is a a. | mission
statement. | b. | goal. | c. | policy. | d. | procedure. | | |
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17.
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“After receiving a shipment, the warehouse supervisor and warehouse clerk must
check the goods against the shipping invoice to verify that all items have been delivered as
required. If the items are satisfactory, the supervisor may take delivery by signing and dating the
invoice.”
The above is an example of a a. | policy. | b. | goal. | c. | mission
statement. | d. | procedure. | | |
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18.
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The
right to make decisions about how responsibilities should be achieved is called a. | liability. | b. | span of control. | c. | accountability. | d. | authority. | | |
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19.
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Employees at the Trexel Company are frequently confused about their assignments, and
many employees are unclear about who exactly they report to. Trexel Company does not seem to provide
an adequate a. | mission
statement. | b. | span of control. | c. | unity of
command. | d. | matrix structure. | | |
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20.
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A
major advantage of a functional organizational structure is that a. | people work with
others who have the same skills. | b. | all of the people with similar jobs will be paid the same
salary. | c. | people working in one function have little interaction with
people in other parts of the business. | d. | people often become more focused on their specific function
than on the success of the whole business. | | |
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Completion
Complete each sentence or
statement.
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21.
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A(n)
____________________ worker is one who has no explicit or implicit contract for long-term
employment.
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22.
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____________________ activities are directed at providing the goods and services
wanted by a business’s customers.
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23.
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____________________ are businesses involved in selling the goods and services of
producers to consumers and other businesses.
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24.
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A
business that takes resources from nature for direct consumption or for use in developing other
products is a specific type of producer called a(n) ____________________.
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25.
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A(n)
____________________ is a business owned and run by just one person.
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26.
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A
business formed as a(n) ____________________ is a separate legal entity formed by documents filed
with the state.
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27.
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A
corporation must create corporate ____________________ that are the operating procedures for the
company.
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28.
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A(n)
____________________ liability company combines the best features of a partnership and a corporation
and provides liability protection for owners.
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29.
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Sometimes a group of people forms a(n) ____________________ to provide goods and
services that they all need; it is owned by members, serves their needs, and is managed in their
interest.
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30.
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In
a(n) ____________________-corporation, all income is passed through to the owners based on their
investment and is taxed on their individual tax returns.
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31.
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A(n)
____________________ statement is a short, specific written statement of the reason a business exists
and what it wants to achieve.
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32.
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____________________ are guidelines used in making consistent decisions.
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33.
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Unity
of ____________________ means that there is a clear reporting relationship for all staff of a
business.
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34.
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In
a(n) ____________________ organizational structure, work is structured around specific projects,
products, or customer groups.
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Short Answer
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35.
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What
is the most important role of American businesses?
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36.
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What
is a service business? Give at least three examples of service businesses.
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37.
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Briefly discuss the advantages and disadvantages of proprietorships.
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38.
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Distinguish between responsibility, authority, and accountability.
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