MOB CHAPTER ONE QUIZ
1. The form of business organization that has the largest sales volume is the:
a. partnership.
b. Private limited companies
c. cooperative.
d. multinational.
-2. The simplest form of business ownership is a:
a. proprietorship.
b. partnership.
c. corporation.
d. cooperative.
3. Which of the following is an advantage of a sole proprietorship?
a. ease of starting a business.
b. being your own boss.
c. pride of ownership.
d. all of the above.
4. The main disadvantage of a general partnership is:
a. the unlimited liability of the partners.
b. disagreement amongst partners.
c. shared management.
d. difficulty of termination.
5. A ___________ is a business with two or more owners:
a. corporation.
b. conglomerate.
c. partnership.
d. public corporation.
6. A partner who is not actually involved in the partnership but lends his name
for public relations purposes is a:
a. silent partner.
b. general partner.
c. nominal partner.
d. dominant partner.
7. A_____________partner is an owner who has unlimited liability and is
active in managing the firm:
a. senior partner.
b. general partner.
c. silent partner.
d. limited partner.
-8. Which of the following is an example of a public corporation?
a. WASA
b. BP TT
c. TCL.
d. REPUBLIC BANK
9. Which of the following is probably the most important reason for
incorporating?
a. limited liability of shareholders.
b. more money for investment.
c. increased flexibility.
d. shared management.
10. Which of the following is an example of a non profit organization?
a. Royal Bank.
b. ROTARY CLUB
c. T&TEC
d. CARIBBEAN AIRLINES
11. A__________ provides for the greatest degree of continuity:
a. general partnership.
b. joint venture.
c. Private limited company
d. sole proprietorship.
12. The major advantage of a franchise is:
a. training and management assistance.
b. personal ownership.
c. nationally recognized name.
d. all of the above.
13. Which of the following is a characteristic of a co-operative?
a. profits are not subject to income tax.
b. one vote per share.
c. dividends are paid on a per share basis.
d. all of the above.
14. The most effective form of business organization for raising capital is the:
a. joint venture.
b. partnership.
c. companies
d. proprietorship.
15. Co-operatives play an important role in:
a. banking
b. agriculture.
c. manufacturing.
d. all of the above.
Question 16
Q. A person who takes a risk to produce goods and services in search of profit -
a. entrepreneur
b. magistrate
c. profiteer
d..risk taker
Question 17
Q. What kind of business is BEST described by these statements?
I am the only owner of my business.
I take all the risks of doing business.
I keep all the profits.
a. proprietorship
b. corporation
c. partnership
d. franchisee
Question 18
Q. An entrepreneur -
a. enforces government regulations
b. takes the risk to earn profit
c. sets the interest rates at banks
d. manages financial investments
Question 19
Q. In a PLC, owners share profit, but liability is limited to -
a. investment
b. distribution
c. theft
d. production
Question 20
Q. A form of business organization that is authorized to act as a legal entity regardless
of the number of owners.
a. companies
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d. distributor
Question 21
Q. What is a disadvantage of partnerships?
a. ease of formation
b. owners share responsibilities
c. limited liability
d. possibility of personality conflict
Question 22
Q. What is the advantage of companies?
a. minimal government regulation
b. limited liability
c. short life span
d. has one owner
Question 23
Q. The Dow Jones industrial average swept past 12,000 for the first time. Investors are
increasingly optimistic about corporate earnings and the economy.
This achievement MOST likely involved which type of business organization?
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b. partnership
c. corporation
d..conglomerate
Question 24
Q. In which type of organization does one person take all the risks?
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b. partnership
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d. proprietorship
Question 25
60 seconds
Q. Floral Shops, Bookstores, Farms are examples of what type business
a. Sole Proprietorship
b. Corporation
c. Franchise
d. Multinational Corporation
Question 26
60 seconds
Q. Easy to start, Owner is his/her own boss, Owner keeps all the profits - These are
advantages of what type of business
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d. Sole Proprietorship
Question 27
60 seconds
Q. Which ownership type has unlimited liability (owner has full responsibility for
company's debt and can lose entire investment as well as personal assets).
a. Partnership
b. Franchise
c. PLC
d. Sole Proprietorship
Question 28
Q. What type of business consists of two or 300 people?
a. Proprietorship
b. Partnership
c. State Corporation
d. Public limited company
Question 29
Q. Which are the disadvantages of a partnership?
a. Partnership must be reorganized if one partner quits
b. Partners share unlimited liability
c. Partners may not get along
d. All of these are correct
Question 30
Q. Law firms, medical practices, and auto body repair shops are examples of what type
of ownership
a. sole proprietorship
b. partnership
c. franchise
d. Companies
Question 31
60 seconds
Q. What type of business structure is owned by many people?
q. corporation
b. partnership
c. sole proprietorship
d. franchise
Question 32
Q. Public Limited Companies do NOT continue when stockholders sell stock.
answer choices
True
False
Question 33
Q. Nike, IBM, and Google are examples of
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Question 34
60 seconds
Q. Who plays an important role business organizations?
answer choices
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Question 35
60 seconds
Report an issue
Q. Owned by many people - stockholders, but treated by the law as one person
a. Proprietorship
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