BUS 100 Exam 1 – Chapters 1–6 – Introduction to Business – 2026 – Study and
Practice Guide
LLC (Limited Liability Company) - correct answer ✔✔ limited liability and taxation like a
partnership
S-corp - correct answer ✔✔ eliminates double taxation and retains limited liability benefit,
popular with entrepreneurs
C-corp - correct answer ✔✔ binded together to recap benefits of belonging to larger org
Joint-venture - correct answer ✔✔ used for ventures that call for large investments
Sole Proprietorship - correct answer ✔✔ owned and operated by one individual. Owner keeps
all profits, taxed at individual rates, be dissolved easily, unlimited liability, and higher tax rate
Partnership - correct answer ✔✔ two or more persons as co-workers. Availability of capital +
credit, unlimited liability and don't pay taxes but file a tax return
General Partnership - correct answer ✔✔ each partner has unlimited liability for debts
Limited Partnership - correct answer ✔✔ risky investment projects where chance of loss is
great. Do not share management but share profits
Public Corporation - correct answer ✔✔ anyone may buy, sell, or trade stock.
Private Corporation - correct answer ✔✔ owned by just one or a few people, no stock sold to
public, not required to disclose financial information to the public
, Functions of Management - correct answer ✔✔ planning, organizing, directing, controlling
Oligopoly - correct answer ✔✔ few businesses selling a product where the business controls the
price
Monopoly - correct answer ✔✔ utility companies government permits due to cost of supplying
service
Pure - correct answer ✔✔ prices determined solely by supply and demand
Monopolistic competition - correct answer ✔✔ businesses have some power over price due to
marketing
Factors of production - correct answer ✔✔ the inputs needed for the creation of a good or
service, these include land, land, entrepreneurship, and capital
Tangible Products - correct answer ✔✔ a physical object that can be touched
intangible Products - correct answer ✔✔ can only be perceived indirectly
Entrepreneur Skills for Success - correct answer ✔✔ alertness, logic, critical thinking, customer
empathy
Retailers - correct answer ✔✔ acquire goods from producers or wholesalers and sell them to
customers
Wholesalers - correct answer ✔✔ provide goods and services to producers and retailers
Practice Guide
LLC (Limited Liability Company) - correct answer ✔✔ limited liability and taxation like a
partnership
S-corp - correct answer ✔✔ eliminates double taxation and retains limited liability benefit,
popular with entrepreneurs
C-corp - correct answer ✔✔ binded together to recap benefits of belonging to larger org
Joint-venture - correct answer ✔✔ used for ventures that call for large investments
Sole Proprietorship - correct answer ✔✔ owned and operated by one individual. Owner keeps
all profits, taxed at individual rates, be dissolved easily, unlimited liability, and higher tax rate
Partnership - correct answer ✔✔ two or more persons as co-workers. Availability of capital +
credit, unlimited liability and don't pay taxes but file a tax return
General Partnership - correct answer ✔✔ each partner has unlimited liability for debts
Limited Partnership - correct answer ✔✔ risky investment projects where chance of loss is
great. Do not share management but share profits
Public Corporation - correct answer ✔✔ anyone may buy, sell, or trade stock.
Private Corporation - correct answer ✔✔ owned by just one or a few people, no stock sold to
public, not required to disclose financial information to the public
, Functions of Management - correct answer ✔✔ planning, organizing, directing, controlling
Oligopoly - correct answer ✔✔ few businesses selling a product where the business controls the
price
Monopoly - correct answer ✔✔ utility companies government permits due to cost of supplying
service
Pure - correct answer ✔✔ prices determined solely by supply and demand
Monopolistic competition - correct answer ✔✔ businesses have some power over price due to
marketing
Factors of production - correct answer ✔✔ the inputs needed for the creation of a good or
service, these include land, land, entrepreneurship, and capital
Tangible Products - correct answer ✔✔ a physical object that can be touched
intangible Products - correct answer ✔✔ can only be perceived indirectly
Entrepreneur Skills for Success - correct answer ✔✔ alertness, logic, critical thinking, customer
empathy
Retailers - correct answer ✔✔ acquire goods from producers or wholesalers and sell them to
customers
Wholesalers - correct answer ✔✔ provide goods and services to producers and retailers
