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B.Com General Commerce — practice questions

Explore 27 free Commerce questions in B.Com General Commerce. Open each question or exercise to read its content, reference answers and available explanation.

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Commerce questions and exercises with answers

Showing questions 1–27 of 27.

A shopkeeper runs her business alone, owning it outright. That is the most popular form of ownership, the:Read the answer and worked solution →Such an owner is personally responsible for every debt the business runs up. That exposure is called:Read the answer and worked solution →Two friends set up together, sharing management and profits. That arrangement is a:Read the answer and worked solution →Another partnership has partners whose liability stops at what they invested. Those partners are the:Read the answer and worked solution →A legal entity created under state law, with the right to operate granted by charter, is a:Read the answer and worked solution →To bring one into existence, founders prepare a document on a form supplied by the state. That document is the:Read the answer and worked solution →The owners of a corporation, holding shares that carry rights, are the:Read the answer and worked solution →They may also receive a share of profits paid out to them. Those payments are:Read the answer and worked solution →A hybrid form lets smaller corporations escape being taxed twice on profits, provided size and ownership tests are met. That is the:Read the answer and worked solution →Small businesses may get liability protection through S corporations or through:Read the answer and worked solution →That protection is not absolute. Mixing personal and business funds can still land an owner in:Read the answer and worked solution →A legal entity with limited liability, an unlimited life span, an elected board and an administrative staff is a:Read the answer and worked solution →Two companies form an alliance solely to carry out one special project. That arrangement is a:Read the answer and worked solution →In franchising, the company that supplies the product or service concept is the:Read the answer and worked solution →The contract letting the local operator use the brand name, trademark and logo is the:Read the answer and worked solution →Mergers come in three main types: vertical, conglomerate and:Read the answer and worked solution →Two supermarket chains combine to cut costs and reduce competition. That merger is:Read the answer and worked solution →A car maker buys the firm that supplies its steel. That merger is:Read the answer and worked solution →A drinks company buys an unrelated software firm to spread its risk. That merger is:Read the answer and worked solution →Catch the ownership formsRead the answer and worked solution →Pop the merger typesRead the answer and worked solution →Run the ownership gatesRead the answer and worked solution →Slice the commerce wordsRead the answer and worked solution →Owner riskRead the answer and worked solution →Sort the commerce wordsRead the answer and worked solution →Type the numberRead the answer and worked solution →Ownership bingoRead the answer and worked solution →

Worked practice questions

A shopkeeper runs her business alone, owning it outright. That is the most popular form of ownership, the:

  1. Sole proprietorship
  2. Public corporation
  3. Limited partnership
  4. Chartered cooperative
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Correct answer: A. Sole proprietorship

1. It accounts for most businesses. 2. One person owns it all. 3. It is the sole proprietorship. _Source: OpenStax Introduction to Business, Chapter 4, Forms of Business Ownership._

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Such an owner is personally responsible for every debt the business runs up. That exposure is called:

  1. Unlimited liability
  2. Insured liability
  3. Limited liability
  4. Joint liability
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Correct answer: A. Unlimited liability

1. Personal assets are at risk. 2. There is no ceiling. 3. It is unlimited liability. _Source: OpenStax Introduction to Business, Chapter 4, Forms of Business Ownership._

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Two friends set up together, sharing management and profits. That arrangement is a:

  1. A joint venture
  2. A partnership
  3. A corporation
  4. A cooperative
Show answer and solution

Correct answer: B. A partnership

1. All partners take part in running it. 2. Profits are shared between them. 3. It is a partnership of that kind. _Source: OpenStax Introduction to Business, Chapter 4, Forms of Business Ownership._

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More Commerce topics

Business OrganisationBusiness StudiesForms of Business Ownership