Business Structures

Front

An advantage of a corporation is that

Back

owners have limited liability for debt.

Front

Barry and two associates have been operating a business that is not going well. Barry is stressed out because the company is over $200,000 in debt and he knows that if it goes out of business, he and his two associates will have to pay it out of their own pockets. It sounds like Barry and his two associates have a

Back

partnership.

Front

Mr. Simpson is liable for all the debts of his company. Mr. Simpson has which type of business organization? Options: sole proprietorship, monopoly, perfect competition, corporation

Back

sole proprietorship

Front

What is one DISADVANTAGE of Ramon's type of business organization? Options: limited liability, ease of start-up, flexibility, unlimited liability

Back

unlimited liability

Front

Which type of business organization has the advantage of limited liability but the disadvantage of less control over business decisions? Options: perfect competition, partnership, sole proprietorship, corporation

Back

corporation

Front

The MOST LIKELY reason for an entrepreneur to start a new business is: to make a profit., to risk financial failure., to create a new social benefit., to discover a new product.

Back

to make a profit.

Front

The liability that partners in a partnership have

Back

Unlimited

Front

The maximum number of partners in a partnership is

Back

20

Front

A disadvantage of a sole proprietorship is unlimited liability for business debts.

Back

TRUE

Front

One advantage of a partnership is that there are more sources of capital available than in a sole proprietorship.

Back

True