Business and Labor - Unit Test Questions & Answers.

Business and Labor - Unit Test Questions & Answers. 1. Which of the following are benefits enjoyed by sole proprietorships? Select the two correct an- swers. 2. What primary responsibility do the sharehold- ers of a corporation have? 3. Determine whether each characteristic de- low regulatory burden & control of decision-making electing a board of directors Sole Proprietorship : Liability is un- scribes a sole proprietorship, a general partner- limited or can be unlimited. & There ship, or a corporation. Note that a characteristic are 1 or more owners. may apply to more than one type of business structure. 4. You have recently discovered that a local busi- ness has been designated 501(c)(3). Which of the following must be true? 5. Which of the following benefits do franchisees enjoy over other small business owners? Select the two correct answers. 6. Which of the following could explain the rela- General Partnership : Liability is un- limited or can be unlimited. & There are 1 or more owners. Corporation : Stocks may be issued to generate income. & There are 1 or more owners. The business has federal tax exemp- tions. Franchises benefit from the suc- cessful marketing provided by fran- chisors. & Franchises have a lower 5-year failure rate than other small businesses. The training and certification re- tively high wages earned by certain medical pro- quired for these professions lead to fessionals, like nurse practitioners and physi- cians? 7. a relatively low quantity of labor sup- plied at any give wage. The Bureau of Labor statistics identifies an oc- cupational trend in the labor market for med- ical professionals, where wages have increased significantly over the past several years. As a result of this observed occupational trend, more individuals within the economy enter the labor market. How does this influence wages and em- ployment within the labor market? 8. In arbitration, what do leaders of the labor The market equilibrium wage will decrease, and the equilibrium quan- tity of labor will increase. to bring a third party into their nego- union and the representatives of company man- tiations who has the ability to make agement agree to? 9. Which of the following describes the primary difference between craft and industrial unions? 10. Explain one way in which hiring an additional binding decision Workers of a particular trade, not an entire industry, form a craft union. Hiring an additional worker could worker could lead to an increase in human cap- lead to an increase in human capital ital. if the worker were to bring new skills and experience that can be taught to other workers.