Do You Know What it is?

Just Curious!
Do you really understand Capitalism? Provide the best
answer to the questions below.

  1. What are the main components of a capitalistic

    1. government, labor, investment
    2. labor, investment
    3. taxes, labor, regulation
    4. invention, engineering, labor, banks

  2. Who are the owners of the company?

    1. Government.
    2. Banks.
    3. The workers
    4. Investors
    5. All of the above

  3. Who are most responsible for the success or
    failure of a venture?

    1. Management, labor, government, regulators
    2. workers, engineers
    3. salesmen, workers, managers
    4. workers, investors

  4. What is profit?

    1. The difference between the cost of producing a
      product and the amount for which it is sold.
    2. The amount that the owners take from the company.
    3. The difference between the income of the venture
      and what it costs to run the venture including taxes.
    4. The amount paid to investors.

  5. Who has the final hiring and firing decisions in a

    1. Labor unions.
    2. Managers.
    3. Government.
    4. Employees.
    5. Owners.
    6. All of the above
    7. None of the above

  6. Who are the “workers” in a venture?

    1. Managers
    2. Salesmen
    3. Engineers
    4. Accountants
    5. Production Employees
    6. Support Staff
    7. Maintenance Staff
    8. All of the above
    9. e, f, and g above
    10. i and d above

  7. What is the main reason a venture is started?

    1. To provide jobs
    2. To produce products and/or services
    3. To provide income for investors
    4. To provide tax to government

  8. What amount of profit should a venture

    1. 6% to unlimited
    2. 0% to 10%
    3. 5% to 25%
    4. 0% to 100%

  9. Who most influences the price of products or

    1. Managers
    2. Government
    3. Customers
    4. Investors
    5. Workers

  10. What is the role of government in capitalism?

    1. Regulate Operation of Business
    2. Protect businesses from each other, individuals,
      and foreign powers
    3. Collect taxes on operation
    4. None of the above
    5. a. and c. above

  11. Who (ultimately) pays any taxes (corporate
    income, FICA, unemployment, ...) charged to a venture

    1. The venture
    2. The investor
    3. The customer
    4. The government

The answers: 1-b, 2-d, 3-d, 4-c, 5-e, 6-h, 7-c, 8-a,
9-c, 10-b, 11-c
This is a preliminary version of the test. If you wish
to make corrections, or have suggestions to make the test better,
please send me an email at happycat at fbai-usa dot com.