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Date Submitted: 07/11/2013 06:24 AM
Week 4 : Entrepreneurship and Business Ownership - Midterm
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Multiple Choice
1. (TCO 1) Business and nonprofit organizations are similar in that they both: (Points : 5) |
contribute to the welfare of society.
seek to earn a profit.
have a short life.
must be controlled by a board of directors.
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2. (TCO 1) Which of the following statements most accurately identifies a serious limitation of the free-market economic system? (Points : 5) |
Free-market economies offer no opportunity for the poor to work their way out of poverty.
Free-market economies have been unable to create wealth as rapidly as other types of economic systems.
Free-market economies often are plagued by shortages of needed consumer goods.
Free-market economies result in a very unequal distribution of wealth.
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3. (TCO 1) ____________ refers to the efforts of the federal government to keep the economy stable by increasing or decreasing taxes and/or government spending (Points : 5) |
Monetary policy
Incomes policy
Fiscal policy
Cyclical policy
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4. (TCO 1) The total value of final goods and services produced within a nation's borders in a given year is known as that nation's (Points : 5) |
aggregate production quota
aggregate domestic output
index of aggregate economic output
gross domestic product
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5. (TCO 4) Compared to a sole proprietorship, which of the following is considered an advantage of a general partnership? (Points : 5) |
Ability to pool financial resources
Limited liability for all owners
Equal division of profits among the owners
Ease and flexibility in transferring shares of ownership to others
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6. (TCO 4) One reason limited liability companies have become so popular is that they: (Points : 5) |
can be taxed either as a corporation or as a partnership, so owners can choose the tax treatment that is most advantageous...