APEX Econ 2.4 – Flashcards
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A business that is owned and operated by a single individual is known as a ______ proprietorship.
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sole
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The owner of a sole proprietorship has ____ liability
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unlimited
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Unlimited liability means that sole proprietors are completely responsible for all of the ______ of their business
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debts
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Which of the following describes an important difference between general partnerships and limited partnerships?
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A general partnership has unlimited liability for all partners while a limited partnership has limited liability
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Which of the following explains one way that a general partnership differs from a limited partnership?
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Each partner in a general partnership is fully responsible for all of the business's debts
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Because of the unlimited liability of all partners, a general partnership most closely resembles which other business type?
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Sole proprietorship
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Which of the following is an advantage of partnerships over sole proprietorships?
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Partnerships generally have more money to invest in starting or expanding a business
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Which of the following is a disadvantage of partnerships compared to sole proprietorships?
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It is sometimes difficult for partners to agree on every business decision
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Which of the following is NOT an advantage of a limited partnership?
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All partners have to agree with each other when making business decisions
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The business decisions of a corporation are made by whom?
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A board of directors
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A corporation is owned by whom?
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Stockholders
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A corporation gives out its profits as dividends paid to whom?
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Stockholders
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Match each type of business with its owner: A. Public Corporation B. Limited Partnership C. Sole Proprietorship
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A. Stockholders B. Two or more persons C. Individual Operator
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Match each type of business with the person or persons who get to keep the business's profits: A. Corporation B. Partnership C. Sole Proprietorship
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A. Stockholders B. Various Investors C. Individual Owner
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Match each type of business with its purpose: A. Sole Proprietorship B. Public Corporation C. Non-Profit Corporation
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A. To make a profit for its owner B. To make dividends for its stockholders C. To benefit a special cause
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The business model that a company follows is generally spelled out in which of the following?
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Business Plan
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Before starting a business, many people find it useful to describe the way the company will operate in which of the following?
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A business plan
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The way a company does business is driven by which of the following?
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Its business model
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Match each business model with the type of business that commonly uses it: A. Shopkeeper B. Subscription C. Bricks and Clicks
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A. Grocery Stores B. Magazines C. Retail Stores
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Match each business model with the advantage it brings: A. Subscription B. Bait and Hook C. Cutting out the Middleman
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A. Steady revenue and predicatable profits B. Attractive prices for basic product C. Reduction in transaction costs and processing time
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Match each business model with a real-world example that follows it: A. Subscription B. Bricks and Clicks C. Cutting out the Middleman
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A. New York Times B. IKEA C. Gateway Computers
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The Google business model is driven by the sale of which of the following?
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Advertisements
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The Google business model is most similar to the model followed by which other industry?
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Media
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Google's business model relies on which of the following to generate revenue?
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The sale of advertisements
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Which of the following distinguishes Google's business model from most other businesses?
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Its relaxed corporate culture
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Which of the following best characterizes the corporate culture at Google?
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Relaxed and non-traditional
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Google's relaxed and non-traditional corporate culture is one aspect of which of the following?
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Its business model
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The addition of the word "google" to dictionaries demonstrates that Google has been successful at which of the following business strategies?
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Branding
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Which of the following demonstrates a successful effort at branding?
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The word "google" has been added to the dictionary.
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Which of the following statements indicates why Google has been successful at branding?
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Google is a corporate name that has become a common term for "search the Internet"
