Business Organizations & Taxes

Front

This type of business is owned by one person.

Back

Sole Proprietorship

Front

Advantages of this business type are that the owner is their own boss and gets to keep all the profits. Options: Partnership, Sole Proprietorship, Corporation, Franchise

Back

Sole Proprietorship

Front

Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability. What type of business is this?

Back

Sole Proprietorship

Front

A business owner who prefers to maintain complete control of all business activities might consider structuring the venture as a(n)

Back

sole proprietorship

Front

The disadvantages of this business organization include unlimited liability, difficulty raising financial capital, difficulty attracting qualified employees, and having a limited life. What type of business organization is being described?

Back

Sole Proprietorship

Front

A partnership in which all partners assume full personal liability for debts of the firm

Back

general partnership

Front

Partners who are only responsible up to the extent of their investment

Back

limited partnership

Front

How is a general partnership organized?

Back

Every partner shares equally in both responsibility and liability.

Front

What is a major advantage of a business that is a partnership rather than a sole proprietorship? Options: The responsibility for the business is shared, The business is easy to set up, The partners are not responsible for business debts, The business is easy to sell

Back

The responsibility for the business is shared

Front

What form of business ownership might Joe consider establishing for his home-based consulting business given his computer knowledge but lack of marketing skills? Options: corporation, sole proprietorship, monopoly, general partnership.

Back

general partnership.