The ____ is a legal document that lists and explains the terms of the partnership.
A) co-owners' agreement
B) charter
C) will
D) articles of partnership
E) formation contract
Question 2 - Resources that a firm owns are called
A) revenue.
B) liabilities.
C) owners' equity.
D) assets.
E) expenses.
Question 3 - Garrett Enterprise
Garrett Enterprise is a well-known company that has been around for many years. However, Mr. Smith, its CEO, has noticed recently that the company is not performing up to par. He has been watching the employees closely. Mr. Smith saw that his workers do only what is required and that no one seems to go above and beyond what is necessary.
He thinks this is odd because Garrett Enterprise used to have dedicated employees who felt a real sense of ownership toward the company. Now it seems that the employees need to be watched all the time just to make sure they are doing the minimum required. The company has always tried to help its employees through various measures, but recently these measures have been unsuccessful.
Mr. Smith also observed that the employees were not engaging with each other. They all seemed to be at ease with each other, but there was very little interaction. When Mr. Smith asked his top managers to study the situation more closely, they reported that the employees were neither dissatisfied nor motivated.
Mr. Smith decided that things needed to change. He decided that the managers would reward only very good behaviors and punish anything that was considered bad behavior. While this may not be the best option, Mr. Smith believes that it may work for the near future.
Refer to Garrett Enterprise. When employees interact with each other, what needs are they meeting?
A) Physiological
B) Safety
C) Social
D) Esteem
E) Self-actualization
Question 4 - Rudy owns a small metal fabrication business that employs 23 workers. As the owner of a small business, one of the major advantages that Rudy will enjoy when competing against larger firms will be a lesser burden of complying with government regulations.
Indicate whether the statement is true or false
Question 5 - A ____ invests money in the business but has no management responsibility.
A) general partner
B) limited partner
C) sole proprietor
D) nominal partner
E) stockbroker
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