Economics - Ch. 8: Business Organizations

Front

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 (obtain a charter)

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Corporation

Front

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

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Sole Proprietorship

Front

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 

Back

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

Front

Which type of business organization is managed on behalf of the owners by a Board of Directors?

Back

Corporation

Front

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

Front

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

Front

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

Front

Which of the following is the definition for Franchise?

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business investment that involves renting or leasing another successful business model