Lankford ITB Chapter 5 Study Guide-
Graded A
The largest numbers of U.S. businesses have no employees other than the owner. T/F -
ANS-T
All businesses make products. T/F - ANS-F
Nonprofit corporations do not have to pay corporate income taxes. T/F - ANS-T
Many businesses fail in their first few years of operation. T/F - ANS-T
When a large business opens in an area, other businesses often will locate there to
support the larger business. T/F - ANS-T
Most businesses use a functional organizational structure. T/F - ANS-T
A span of control is a diagram that shows the structure of an organization. T/F - ANS-F
Only very large businesses can become corporations T/F - ANS-F
Every business performs all of the following activities EXCEPT - ANS-manufacturing
products
Which major category of business is the fastest-growing in the U.S. economy? - ANS-
service business
Over the next decade, which of the following groups will experience a DECLINE in
employment growth rates in the United States? - ANS-White Non-Hispanic workers
A(n) ____________________ is a business owned and run by just one person. - ANS-
Sole Proprietorship
A business formed as a(n) ____________________ is a separate legal entity formed by
documents filed with the state. - ANS-corporation
Employees at the Trexel Company are frequently confused about their assignments,
and many employees are unclear about who exactly they report to. Trexel Company
does not seem to provide an adequate - ANS-unity of command
Which of the following types of business is NOT a producer? - ANS-pharmacy
Graded A
The largest numbers of U.S. businesses have no employees other than the owner. T/F -
ANS-T
All businesses make products. T/F - ANS-F
Nonprofit corporations do not have to pay corporate income taxes. T/F - ANS-T
Many businesses fail in their first few years of operation. T/F - ANS-T
When a large business opens in an area, other businesses often will locate there to
support the larger business. T/F - ANS-T
Most businesses use a functional organizational structure. T/F - ANS-T
A span of control is a diagram that shows the structure of an organization. T/F - ANS-F
Only very large businesses can become corporations T/F - ANS-F
Every business performs all of the following activities EXCEPT - ANS-manufacturing
products
Which major category of business is the fastest-growing in the U.S. economy? - ANS-
service business
Over the next decade, which of the following groups will experience a DECLINE in
employment growth rates in the United States? - ANS-White Non-Hispanic workers
A(n) ____________________ is a business owned and run by just one person. - ANS-
Sole Proprietorship
A business formed as a(n) ____________________ is a separate legal entity formed by
documents filed with the state. - ANS-corporation
Employees at the Trexel Company are frequently confused about their assignments,
and many employees are unclear about who exactly they report to. Trexel Company
does not seem to provide an adequate - ANS-unity of command
Which of the following types of business is NOT a producer? - ANS-pharmacy
