Understanding Cooperatives: Unit 1 - The American Business Enterprise System


Quiz 1 - The American Business Enterprise System


Name ___________________________________________ Date _______________   

True/False (Write true or false for each statement.)
   _________ 1.  Individually owned, partnerships, corporations, cooperative corporations, and LLC's help to provide our
                              communities with needed goods and services.
   _________ 2.  Cooperatives eliminate the profit motive among members.
   _________ 3.  If an individually owned business firm were to fail, it would not be possible for the owner to lose more than
                              he/she invested in the business.
   _________ 4.  Cooperatives are owned and controlled by members.
   _________ 5.  In a cooperative, capital is generally supplied by investors seeking profits.
   _________ 6.  In an investor-oriented corporation, profits are shared in direct relation to the amount of stock owned.
   _________ 7.  In partnerships, income is distributed among partners according to the percentage of business each one owns.
   _________ 8.  In a cooperative, net earnings are returned to members based on how much the member patronized the
                              cooperative.
   _________ 9.  Both the investor-oriented corporation and the cooperative corporation must be legally chartered to do business.
   _________ 10. Cooperatives are common in such areas of business as: insurance, credit, agriculture, consumer goods, and rural
                            electricity.

(Short answer section)

11.  Our American system of business is often described as the _________ or _______________ enterprise system.

12.  List and briefly explain the four basic principles of the American business system.

a) __________________________________________________________________________________________________
 
    __________________________________________________________________________________________________

b) __________________________________________________________________________________________________
 
    __________________________________________________________________________________________________

c) __________________________________________________________________________________________________

    __________________________________________________________________________________________________
 

d) __________________________________________________________________________________________________

    __________________________________________________________________________________________________

13. List the four basic forms of business in America.

a) __________________________________________________________________________________________________
 
b) __________________________________________________________________________________________________
 
c) __________________________________________________________________________________________________
 
d) __________________________________________________________________________________________________

14.  Corporations are divided into two types. What are those two types?

a) __________________________________________________________________________________________________
 
b) __________________________________________________________________________________________________

15.  What hybrid business structure is becoming increasingly common?

      __________________________________________________________________________________________________

      __________________________________________________________________________________________________


16. Name a cooperative in your hometown, or a nearby town.

   ____________________________________________________________________________________________________

      __________________________________________________________________________________________________

      __________________________________________________________________________________________________



Rural Development USDA: Understanding Cooperatives - Unit 1   [Back to Unit 1]