Chapter 3 Test
True/False
Indicate whether the statement is true or false.
____
1. Preferred stock represents the nonvoting ownership of a corporation.
____
2. Limited liability is one characteristic of the corporate form of business organization.
____
3. A proxy is a written promise issued by a corporation to repay borrowed money at a later date.
____
4. One advantage of a corporation is the ease of obtaining a charter.
____
5. One disadvantage of a general partnership is each partners' responsibility for the acts of all other partners.
____
6. Many schools, medical care facilities, and churches operate as nonprofit organizations.
____
7. Cooperatives can be organized to help consumers, provide services, or help producers.
____
8. The American Federation of Labor is an example of a professional association.
____
9. Labor unions use collective bargaining to negotiate job-related issues with management.
____ 10. Social Security is an example of government's direct role in the economy.
____ 11. Sole proprietorships must request a charter from the state in which they are organized.
____ 12. People form partnerships because it often improves a business's management and can usually attract capital
more easily than proprietorships.
____ 13. Investors in corporations have unlimited liability for the company's debts.
____ 14. The dividends of stockholders in a corporation are subject to double taxation.
____ 15. An income statement is prepared by businesses to report sales, expenses, profits, and other financial activities.
____ 16. When two firms merge, both retain their legal identities.
____ 17. One of the principal reasons that companies merge is to diversify their product lines.
____ 18. A consumer cooperative can offer members prices that are lower than those charged by regular businesses.
____ 19. A professional association tries to improve the working conditions, skill levels, and public perceptions of the
profession.
____ 20. The government is a nonprofit organization that plays a direct role in the economy by, for example, regulating
public utilities that would operate with few or no competitors.
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____ 21. Unlike a general partnership, in a limited partnership
a. all partners share equal financial responsibility for the firm's decisions.
b. the inactive partner has limited liability for the business's debts.
c. the partners must pay special business taxes.
d. the business does not end with the death of a partner.
____ 22. This regulates the sale of stock in a corporation.
a. labor unions
c. stockbrokers
____ 23.
____ 24.
____ 25.
____ 26.
____ 27.
____ 28.
____ 29.
b. Securities and Exchange Commission
d. chamber of commerce
A merger of corporations involved in different steps of manufacturing or marketing is known as a
a. multinational merger.
c. vertical merger.
b. horizontal merger.
d. conglomerate.
Non-profit organizations may
a. issue stock.
b. pay dividends.
c. provide goods and services to members.
d. pay income taxes.
The local chamber of commerce works to
a. promote the welfare of its members and the community.
b. earn dividends for members.
c. protect its members from consumer complaints.
d. aid member companies in negotiating with labor unions.
In a general partnership,
a. the business continues even if one partner dies.
b. partners must pay specific business taxes.
c. partners usually draw up legal papers called articles of partnership.
d. partners are only liable for the business's debt up to the amount of their investment.
An advantage of a corporation is that
a. owners pay fewer taxes than owners of other forms of business.
b. the business is subject to little government regulation.
c. owners have limited liability for debt.
d. owners have direct and immediate control over daily management of the business.
Which of the following is NOT a nonprofit organization?
a. multinational
c. chamber of commerce
b. producer cooperative
d. labor union
What form of business organization does this organizational chart depict?
a. partnership
c. corporation
b. proprietorship
d. joint venture
____ 30.
According to this organizational chart, to whom does the treasurer report?
a. president
c. stockholders
b. board of directors
d. secretary
____ 31.
Partnerships, 1997-1999
Business Receipts
Business Expenses
Profit
In billions of dollars
1997
$1,354
$1,186
X
1998
$1,603
$1,416
Y
1999
$1,907
$1,679
Z
Source: Statistical Abstract of the United States, 2002.
What number should appear in place of the X in the table?
a. $2,540
c. $3,019
b. $187
d. $168
____ 32.
Which letter represents the proper location on the diagram for “unlimited liability”?
a. T
c. V
b. W
d. Y
____ 33.
Which letter represents the proper location on the diagram for “owners earn dividends”?
a. W
c. Y
b. X
d. Z
____ 34.
What type of merger created Mega Corporation in the illustration?
a. horizontal merger
c. diagonal merger
b. vertical merger
d. conglomerate merger
____ 35.
What type of merger does the illustration depict?
a. horizontal merger
c. diagonal merger
b. vertical merger
d. conglomerate merger
____ 36.
What type of merger does the illustration show?
a. horizontal merger
c. diagonal merger
b. vertical merger
d. conglomerate merger
Largest American-Owned Multinationals
Revenue
Rank/Company
1. Exxon
2. Ford Motor
3. IBM
4. General Motors
5. Texaco
6. General Electric
7. Citigroup
8. Wal-Mart Stores
9. Chevron
10. Hewlett-Packard
Foreign
($mil)
143,044
51,691
51,180
48,233
43,146
42,390
37,396
32,100
31,374
27,230
Total
($mil)
206,083
170,064
88,396
184,632
60,220
129,853
111,826
191,329
69,058
48,782
Assets
Foreign
as % of
Total
69.4
30.4
57.9
26.1
71.6
32.6
33.4
16.8
45.4
55.8
Foreign
($mil)
56,742
19,874
14,348
12,578
7,879
159,367
269,837
25,742
27,126
2,244
Total
($mil)
89,829
45,804
35,797
35,376
15,897
437,006
741,114
78,130
50,832
4,500
Foreign
as % of
Total
63.2
43.4
40.1
35.6
49.6
36.5
36.4
32.9
53.4
49.9
Source: Forbes, July 23, 2001.
____ 37.
Which multinational shown in the table received the largest portion of its income from foreign sources?
a. Exxon
c. Texaco
b. Hewlett-Packard
d. Wal-Mart Stores
____ 38.
According to the table, more than half of the assets of which company or companies are located outside
of the United States?
a. Exxon
b. Exxon, IBM, Texaco, Hewlett-Packard
c. all of them
d. Chevron, Exxon
____ 39.
In the 20th century, the Soviet Union collapsed because its command-and-control economy
couldn’t keep up with the West’s free market. In the 21st century, the same fate will befall
companies whose CEOs [chief executive officers] attempt to control everything. In a world
that is becoming ever more chaotic and dependent on brainpower, teams at the top will make
more sense than a single outrageously paid CEO who sits behind a “buck stops here” plaque.
Source: “The Global Corporation Becomes the Leaderless Corporation,” Business Week, August 30, 1999.
The author of this passage believes that global corporations should have
a. no clear leader.
c. leadership teams.
b. Soviet-style leadership.
d. lower paid leaders.
Grocery store giant Kroger Co. agreed Monday to purchase rival Fred Meyer Co. in a $12.8 billion deal that
will enable Kroger to reclaim its status as the nation’s largest supermarket company.... [Analysts say] the
merger is a good deal for both companies, one that should create the economies of scale necessary to remain
competitive in the tough supermarket industry.
The merger also will enable Kroger to [stay] ahead of rival Albertson’s, which otherwise would have eclipsed
Kroger through its $11.7 billion buyout of American Stores Co. in August.... Combined with Meyer, currently
the fifth-largest grocery chain, Kroger will operate 2,200 supermarkets in 31 states, boasting $43 billion in
annual sales.
Source: “Kroger Bags Fred Meyer,” CNNfn, October 19, 1998.
____ 40.
What type of merger does the passage describe?
a. vertical
c. multinational
b. conglomerate
d. horizontal
____ 41.
a.
b.
c.
d.
According to the passage, the merger enabled Kroger to
diversify.
acquire new product lines.
become the industry’s largest company.
acquire a new corporate identity.
Third Quarter Income Statement
Sales of Goods and Services:
less: Cost of goods sold
Wages and salaries
Interest payments
Depreciation
Earnings Before Tax:
less: Taxes (at 40%)
$2,000
650
350
200
200
$600
240
Net Income:
plus: Non-cash charges
$360
200
Cash Flow:
$560
____ 42.
Which expense category shown at the top of the income statement represents a non-cash charge?
a. cost of goods sold
c. interest payments
b. wages and salaries
d. depreciation
____ 43.
On the income statement shown in the illustration, what dollar amount represents the total amount of
new funds the business generated from operations in the third quarter?
a. $560
c. $600
b. $360
d. $2,000
Completion
Complete each statement.
44. ____________________, sometimes called “the bottom line,” is the sum of net income and non-cash charges
such as depreciation.
45. In a ____________________ merger, companies that are involved in different steps of manufacturing join
together.
46. Multinationals are usually welcome in foreign countries because they produce ____________________ for
the host country.
47. During the 1970s and 1980s, ____________________ mergers were popular in the United States.
48. ____________________ help spread technology throughout the world.
Short Answer
49. Analyzing Information Why should members of a general partnership be concerned about the financial
responsibility of their partners?
50. Analyzing Information Why does a corporation sell bonds?
51.
What conclusion can you draw about proprietorships from the comparison shown in
the illustration?
Chapter 3 Test
Answer Section
TRUE/FALSE
1. ANS: T
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 63, and in the Reading
Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3, Section 1, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
epp.glencoe.com.
NOT: Page 63
2. ANS: T
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 64, and in the Reading
Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3, Section 1, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
epp.glencoe.com.
NOT: Page 64
3. ANS: F
PTS: 1
DIF: Challenging
REF: Learn more about this question in Economics Principles and Practices, page 63, and in the Reading
Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3, Section 1, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
epp.glencoe.com.
NOT: Page 63
4. ANS: F
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 65, and in the Reading
Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3, Section 1, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
epp.glencoe.com.
NOT: Page 65
5. ANS: T
PTS: 1
DIF: Easy
REF: Learn more about this question in Economics Principles and Practices, page 62, and in the Reading
Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3, Section 1, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 62
6. ANS: T
PTS: 1
DIF: Easy
REF: Learn more about this question in Economics Principles and Practices, page 75, and in the Reading
Essentials and Study Guide, Chapter 3, Section 3. For additional practice, complete Chapter 3, Section 3, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 75
7. ANS: T
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 76, and in the Reading
Essentials and Study Guide, Chapter 3, Section 3. For additional practice, complete Chapter 3, Section 3, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 76
8. ANS: F
PTS: 1
DIF: Challenging
REF: Learn more about this question in Economics Principles and Practices, page 77, and in the Reading
Essentials and Study Guide, Chapter 3, Section 3. For additional practice, complete Chapter 3, Section 3, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 77
9. ANS: T
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 77, and in the Reading
Essentials and Study Guide, Chapter 3, Section 3. For additional practice, complete Chapter 3, Section 3, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 77
10. ANS: F
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 79, and in the Reading
Essentials and Study Guide, Chapter 3, Section 3. For additional practice, complete Chapter 3, Section 3, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 79
11. ANS: F
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, pages 57-58, and in the
Reading Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3,
Section 1, of the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Pages 57-58
12. ANS: T
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 61, and in the Reading
Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3, Section 1, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 61
13. ANS: F
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 64, and in the Reading
Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3, Section 1, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 64
14. ANS: T
PTS: 1
DIF: Challenging
REF: Learn more about this question in Economics Principles and Practices, page 65, and in the Reading
Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3, Section 1, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 65
15. ANS: T
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 68, and in the Reading
Essentials and Study Guide, Chapter 3, Section 2. For additional practice, complete Chapter 3, Section 2, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 68
16. ANS: F
PTS: 1
DIF: Easy
REF: Learn more about this question in Economics Principles and Practices, page 69, and in the Reading
Essentials and Study Guide, Chapter 3, Section 2. For additional practice, complete Chapter 3, Section 2, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 69
17. ANS: T
PTS: 1
DIF: Challenging
REF: Learn more about this question in Economics Principles and Practices, page 70, and in the Reading
Essentials and Study Guide, Chapter 3, Section 2. For additional practice, complete Chapter 3, Section 2, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 70
18. ANS: T
PTS: 1
DIF: Easy
REF: Learn more about this question in Economics Principles and Practices, page 76, and in the Reading
Essentials and Study Guide, Chapter 3, Section 3. For additional practice, complete Chapter 3, Section 3, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 76
19. ANS: T
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 77, and in the Reading
Essentials and Study Guide, Chapter 3, Section 3. For additional practice, complete Chapter 3, Section 3, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 77
20. ANS: F
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 79, and in the Reading
Essentials and Study Guide, Chapter 3, Section 3. For additional practice, complete Chapter 3, Section 3, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 79
MULTIPLE CHOICE
21. ANS: B
PTS: 1
DIF: Average
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Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3, Section 1, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 62
22. ANS: B
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 65, and in the Reading
Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3, Section 1, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 65
23. ANS: C
PTS: 1
DIF: Challenging
REF: Learn more about this question in Economics Principles and Practices, page 71, and in the Reading
Essentials and Study Guide, Chapter 3, Section 2. For additional practice, complete Chapter 3, Section 2, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 71
24. ANS: C
PTS: 1
DIF: Easy
REF: Learn more about this question in Economics Principles and Practices, page 75, and in the Reading
Essentials and Study Guide, Chapter 3, Section 3. For additional practice, complete Chapter 3, Section 3, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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NOT: Page 75
25. ANS: A
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 78, and in the Reading
Essentials and Study Guide, Chapter 3, Section 3. For additional practice, complete Chapter 3, Section 3, of
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NOT: Page 78
26. ANS: C
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 60, and in the Reading
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NOT: Page 60
27. ANS: C
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 64, and in the Reading
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NOT: Page 64
28. ANS: A
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 72, and in the Reading
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NOT: Page 72
29. ANS: C
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, pages 62-64, and in the
Reading Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3,
Section 1, of the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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MSC: Document Based Question
NOT: Pages 62-64
30. ANS: B
PTS: 1
DIF: Easy
REF: Learn more about this question in Economics Principles and Practices, pages 62-64, and in the
Reading Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3,
Section 1, of the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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MSC: Document Based Question
NOT: Pages 62-64
31. ANS: D
PTS: 1
DIF: Easy
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Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3, Section 1, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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MSC: Document Based Question
NOT: Page 60
32. ANS: B
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, pages 58, 62, and in the
Reading Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3,
Section 1, of the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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MSC: Document Based Question
NOT: Page 58 | Page 62
33. ANS: C
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 63, and in the Reading
Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3, Section 1, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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MSC: Document Based Question
NOT: Page 63
34. ANS: B
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 71, and in the Reading
Essentials and Study Guide, Chapter 3, Section 2. For additional practice, complete Chapter 3, Section 2, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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MSC: Document Based Question
NOT: Page 71
35. ANS: D
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, pages 71-72, and in the
Reading Essentials and Study Guide, Chapter 3, Section 2. For additional practice, complete Chapter 3,
Section 2, of the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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MSC: Document Based Question
NOT: Pages 71-72
36. ANS: A
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 71, and in the Reading
Essentials and Study Guide, Chapter 3, Section 2. For additional practice, complete Chapter 3, Section 2, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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MSC: Document Based Question
NOT: Page 71
37. ANS: C
PTS: 1
DIF: Easy
REF: Learn more about this question in Economics Principles and Practices, pages 72-73, and in the
Reading Essentials and Study Guide, Chapter 3, Section 2. For additional practice, complete Chapter 3,
Section 2, of the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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MSC: Document Based Question
NOT: Pages 72-73
38. ANS: D
PTS: 1
DIF: Easy
REF: Learn more about this question in Economics Principles and Practices, pages 72-73, and in the
Reading Essentials and Study Guide, Chapter 3, Section 2. For additional practice, complete Chapter 3,
Section 2, of the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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MSC: Document Based Question
NOT: Pages 72-73
39. ANS: C
PTS: 1
DIF: Easy
REF: Learn more about this question in Economics Principles and Practices, page 63, and in the Reading
Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3, Section 1, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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MSC: Document Based Question
NOT: Page 63
40. ANS: D
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, pages 71-72, and in the
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Section 2, of the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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MSC: Document Based Question
NOT: Pages 71-72
41. ANS: C
PTS: 1
DIF: Easy
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Section 2, of the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
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MSC: Document Based Question
NOT: Pages 71-72
42. ANS: D
PTS: 1
DIF: Average
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MSC: Document Based Question
NOT: Page 69
43. ANS: A
PTS: 1
DIF: Average
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MSC: Document Based Question
NOT: Page 69
COMPLETION
44. ANS: Cash flow
PTS: 1
DIF: Average
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NOT: Page 69
45. ANS: vertical
PTS: 1
DIF: Challenging
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NOT: Page 71
46. ANS: tax revenues
PTS: 1
DIF: Average
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NOT: Page 73
47. ANS: conglomerate
PTS: 1
DIF: Average
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Essentials and Study Guide, Chapter 3, Section 2. For additional practice, complete Chapter 3, Section 2, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
epp.glencoe.com.
NOT: Page 71
48. ANS: Multinationals
PTS: 1
DIF: Easy
REF: Learn more about this question in Economics Principles and Practices, page 73, and in the Reading
Essentials and Study Guide, Chapter 3, Section 2. For additional practice, complete Chapter 3, Section 2, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
epp.glencoe.com.
NOT: Page 73
SHORT ANSWER
49. ANS:
In a general partnership, all partners are liable for the business's losses. One partner's irresponsibility could
cause all the partners to lose money.
PTS: 1
DIF: Challenging
REF: Learn more about this question in Economics Principles and Practices, page 62, and in the Reading
Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3, Section 1, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
epp.glencoe.com.
NOT: Page 62
50. ANS:
A corporation sells bonds to raise money. It is a way of borrowing money from people who purchase the
bonds.
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 64, and in the Reading
Essentials and Study Guide, Chapter 3, Section 1. For additional practice, complete Chapter 3, Section 1, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
epp.glencoe.com.
NOT: Page 64
51. ANS:
Although the vast majority of American businesses are proprietorships (73%), proprietorships generate the
smallest share of total business revenues (5%).
PTS: 1
DIF: Average
REF: Learn more about this question in Economics Principles and Practices, page 58, and in the Reading
Essentials and Study Guide, Chapter 3, Section 1 For additional practice, complete Chapter 3, Section 1, of
the Interactive Tutor Self-Assessment CD-ROM, and visit this book's Online Learning Center at
epp.glencoe.com.
MSC: Document Based Question
NOT: Page 58