Types of Businesses

Front

What is a limited partnership?

Back

A partnership where at least one partner is not active in daily operations.

Front

What is a key characteristic of a sole proprietorship regarding decision-making?

Back

Decisions are made quickly by the owner

Front

What is a primary disadvantage of a partnership? Options: Limited liability, Easy transfer of ownership, Ease of raising financial capital

Back

Complex legal structure

Front

What is required to start a corporation?

Back

A charter

Front

What is limited liability in a corporation?

Back

Only the corporation is responsible for its debts

Front

What is a disadvantage of corporations?

Back

They are subject to double taxation.

Front

What must corporations release to keep shareholders informed?

Back

Financial reports

Front

Which organizations fall under the category of nonprofit organizations? Options: Retail stores, Churches, hospitals, and social service agencies, Manufacturing companies, Technology startups

Back

Churches, hospitals, and social service agencies

Front

What is a common requirement for corporations due to double taxation?

Back

They must keep detailed records of sales and expenses

Front

This type of business organization involves two or more individuals who agree to contribute resources to the business in return for a share of the profit.

Back

Partnership