Ch. 8 Flashcard- Business Organizations

Front

Despite being a small business and having only one owner, this form of business organization is the most common, in fact almost 3 out of every 4 businesses are this type of business organization:

Back

Sole Proprietorship

Front

In which business organization is it easiest to raise capital? This business type has an easier time getting loans from banks and they can always sell shares of stocks to raise financial capital.

Back

Corporation

Front

Which of the following businesses would be taxed twice? The Law Firm of Floyd & Floyd, LLP (Limited Liability Partnership), Mrs. Floyd’s One-and-Only Diner and Eatery, The Floyd Corporation, L & Floyd’s Paper Partnership

Back

The Floyd Corporation

Front

The contractual agreement that corporations purchase to start up their corporation, and which outlines how people invest in the company is known as the -

Back

Charter

Front

One big disadvantage for a partnership is that-

Back

there is the potential for partner conflict, as both partners are liable for the actions of each other.

Front

Which of the following does NOT describe a sole proprietorship?
- Easy to raise financial capital by selling shares of stocks
- Owner gets all the profits
- Business itself pays no income taxes
- Ease of startup, management and closing

Back

Easy to raise financial capital by selling shares of stocks

Front

Which of the business organizations has unlimited liability? Options: Franchised Partnership, Sole Proprietorship, Unlimited Partnership, Corporation

Back

Sole Proprietorship

Front

Within a limited partnership, one individual usually has no part in the day-to-day management of the operation. This individual is known as a-

Back

Silent Partner

Front

Who is the actual owner of the business that lets other investors rent or lease its name, business profile and way of doing business?

Back

Franchisor

Front

The legal life of a corporation:

Back

Never stops