Flashcards: Business Organizations & Market Structures

Front

What is the most common form of business organization?

Back

The sole proprietorship.

Front

Which of the following is an advantage of a sole proprietorship? Options: Lack of permanence, Limited access to resources, Easy to discontinue, Unlimited liability

Back

Easy to discontinue

Front

Liability is the

Back

legal obligation to pay debts.

Front

A partnership is a business organization owned by

Back

two or more individuals.

Front

In a limited liability partnership, all partners

Back

are limited from personal liability in certain situations.

Front

Most large businesses are

Back

corporations.

Front

One of the ways a corporation can raise money is by: A. selling stock on the stock market., B. buying bonds from other corporations., C. seeking money from the government for research and development., D. selling shares to the founders.

Back

selling stock on the stock market.

Front

Which of the following is an example of a merger? Options: A. An individual buys a franchise., B. Two individuals form a partnership., C. A company combines with a company that supplies it with raw materials., D.A company sells bonds to raise money for expansion.

Back

A company combines with a company that supplies it with raw materials.

Front

In return for a fee to a franchiser, a business owner receives the right

Back

to sell the franchiser’s goods and services.

Front

Which of the following describes a horizontal merger? Options: The Pluto Motor Company merges with Acme Tire Company, Megabux Film Studios merges with Good Earth Food Stores, The Sunshine Rice Cereal Company merges with New Dawn Oat Cereal Company, Futurama Video Games merges with Lightening Battery Company

Back

The Sunshine Rice Cereal Company merges with New Dawn Oat Cereal Company