Economics - Ch. 8: Business Organizations

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Disadvantages include double taxation and more government regulation. What type of business structure does this describe? Options: Sole Proprietorship, Partnership, Corporation

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Corporation

Front

You must file for permission to form from the national or state government. Options: Sole Proprietorship, Partnership, Corporation

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Corporation

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Advantages include full control, ease of start up, and no separate taxes.

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Sole Proprietorship

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Susan, Phil, Robert, and Martina are all lawyers. After several years of working for big firms, they decide to pull their resources and start their own law practice together. The four of them will make all their business decisions together and will share all of the profits and financial risk. Their new law firm is a 

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partnership

Front

Which type of business organization places all the liability on a single seller? Options: Sole Proprietorship, Partnership, Corporation

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Sole Proprietorship

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Which type of business organization is managed by a Board of Directors? Options: Sole Proprietorship, Partnership, Government, Corporation

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Corporation

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Sarah's Sassy Hair Salon is most likely this type of business organization: Sole Proprietorship, Partnership, Corporation, None of these

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Sole Proprietorship

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What is a disadvantage of partnerships? Options: ease of formation, owners share responsibilities, limited liability, possibility of personality conflict

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possibility of personality conflict

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Which of the following is the definition for sole proprietorship?

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unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United States

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Which of the following is the definition for Franchise?

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business investment that involves renting or leasing another successful business model; such as a fast food restaurant