Key for Unit 1: Quiz 1
True/False (Write true or
false for each statement.)
True 1. Individually owned,
partnerships, corporations, cooperative corporations, and LLC's
help to provide our
communities with needed goods and services.
False 2. Cooperatives eliminate the
profit motive among members.
False 3. If an individually owned
business firm were to fail, it would not be possible for the owner to
lose more than
he/she invested in the business.
True 4. Cooperatives are owned
and controlled by members.
False 5. In a cooperative, capital is
generally supplied by investors seeking profits.
True 6. In an investor-oriented
corporation, profits are shared in direct relation to the amount of
True 7. In partnerships, income
is distributed among partners according to the percentage of business
each one owns.
True 8. In a cooperative, net
earnings are returned to members based on how much the member
True 9. Both the
investor-oriented corporation and the cooperative corporation must be
legally chartered to do business.
True 10. Cooperatives are common in
such areas of business as: insurance, credit, agriculture, consumer
goods, and rural
11. Our American
system of business is often described as the free or private
12. List and
briefly explain the four basic principles of the American business
a) Freedom of
motives of owner
d) Owner control
13. List the four basic
forms of business in America.
are divided into two types. What are those two types?
15. What hybrid
business structure is becoming increasingly common?
The limited liability
16. Name a cooperative in
your hometown, or a nearby town. (Open group discussion question -
select some students to
provide their answer and discuss.)