Copyright

Business Types & Decision Making Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. Which of the following is the best explanation of a cooperative?

Question 2 2. Which type of entrepreneur is focused on getting a new business off the ground and then moving on to start a new one?

Question 3 3. What is the primary reason a business would decide to become a corporation over any other form of organization?

Question 4 4. Which one of the following is NOT a way that a Limited Liability Company is like a corporation?

Question 5 5. Which of the following businesses cannot be a cooperative?

Page 2

Question 6 6. What type of decision making uses analytics, facts and a step-by-step process to come to a solution?

Question 7 7. Tyler is the sole owner and stockholder of the corporation, Tyler's Tires. Two years ago, Tyler's Tires hired Anna as the CEO. If Tyler dies, what happens to Tyler's Tires?

Question 8 8. Which one of the following is a primary reason many cooperatives are organized?

Question 9 9. Who can manage an LLC?

Question 10 10. Which of the following is the best explanation of the main difference or differences between a limited partner and a general partner?

Page 3

Question 11 11.

Read the scenario and identify which decision-making strategy was MOST likely utilized:

A project manager must decide by the end of the day which colleague to move to an important project with a looming deadline. One candidate is still in training, but has proven to be a quick study who brings fresh ideas to the project. The second candidate has worked at the company for ten years and is a dedicated and knowledgeable employee. The project manager chooses the new hire for the project.

Question 12 12. Which of the following factors of production is most relevant to entrepreneurship?

Question 13 13. What is the difference between an S-corporation and a C-corporation?

Question 14 14.

Read the scenario and identify which decision-making strategy was MOST likely utilized:

A supervisor overhears some members of his team complaining about workplace issues. He decides to take a survey of his employees' attitudes about the workplace. Next, he analyzes the results, discusses the data with his assistant supervisor, and then begins the process to implement changes to some workplace policies.

Question 15 15. Which one of the following is not a characteristic of a consumer cooperative?

Page 4

Question 16 16. What type of entrepreneur is required to invest all profits back into the enterprise?

Question 17 17. Which of the following governs the relationship between a franchisee and a franchisor?

Question 18 18. Which one of the following is a cost a franchisee often must bear relating to the franchise arrangement?

Question 19 19. What does someone have to file to form a limited liability company?

Question 20 20. What type of partnership has a general partner who has full liability and a limited partner whose liability is limited to their investment in the partnership?

Page 5

Question 21 21. Which of the following describes the income tax treatment for a sole proprietorship?

Question 22 22. What document is used to govern the operations of a limited liability company?

Question 23 23. A sole proprietorship must register with which of the following?

Question 24 24. Which one of the following is considered a disadvantage of a corporation?

Question 25 25. How much protection from liability does a sole proprietorship offer?

Page 6

Question 26 26. Which type of cooperative is owned and controlled by customers?

Question 27 27. Which of the following best describes a franchise?

Question 28 28. Which one of the following is the partnership document that governs the rights and responsibilities of the partners?

Question 29 29. Which of the following businesses represents a sole proprietorship?

Question 30 30. What can be a disadvantage associated with the use of a franchise?

Business Types & Decision Making Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

MTTC Economics (007): Practice & Study Guide  /  Business Courses
Support