Business and Government — Test Answers

25 verified answers

A plan for spending money that balances income with spending and shows how money will be spent is

a deficit.

an expenditure.

a budget.

a surplus.

The most common business organizations in the United States are

sole proprietorships.

corporations.

franchises.

partnerships.

Which best describes the difference between sole proprietorships and partnerships?

Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.

Sole proprietors split profits and share liabilities, while partners keep all profits and have unlimited liability.

Sole proprietors pay taxes only on business profits, while partners do not have to pay taxes on profits.

Sole proprietors share responsibilities, while partners are responsible for only a portion of the business.

Governments collect taxes to ensure that

politicians get paid in a timely manner.

a government program exists for every need that arises.

there is sufficient money to fund private businesses.

citizens contribute to meeting society's needs.

How are government regulations established?

The courts establish regulations in response to unfair business practices.

Business owners agree to create regulations to better compete with one another.

Citizens agree on new regulations through annual elections.

Specialized executive agencies respond to a new policy by creating regulations.

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