Intro to Business and Forms of Business Ownership

Front

A business with one owner is known as a:

Back

Sole Proprietorship

Front

A business run by 2 or more people and has unlimited liability is known as a:

Back

Partnership

Front

What is the name of a person who owns part of a corporation?

Back

Shareholder

Front

This type of business is subject to many more laws and are more difficult to form.

Back

Corporation

Front

This type of organization is a legal entity separate from its owners.

Back

Corporation

Front

Which of the following best describes the term limited liability? If the business fails: Personal possessions of the owner can be taken to pay any debts, The owner is personally liable for all the debts of the business, There is no limit on the amount the owner has to pay to settle debts, The owner only loses the amount invested in the business

Back

The owner only loses the amount invested in the business

Front

Which of the following is a drawback for an entrepreneur setting up a business as a sole proprietorship?
Options: Profit is shared, Financial accounts are kept private, Limited liability, Unlimited liability

Back

Unlimited liability

Front

Which of the following is an advantage of operating a large established business as a corporation?
Shares can be sold to the public to raise additional finance,
Financial accounts are published,
Shares can only be sold to invited investors to raise finance,
Owners have unlimited liability

Back

Shares can be sold to the public to raise additional finance

Front

Which legal structure would an individual wishing to start-up a small business choose because it is quick, easy and inexpensive to set up?

Back

Sole proprietorship

Front

Two Brothers Pizza would most likely show which type of ownership? Options: Partnership, Corporation, Stock and Bonds, Single Ownership

Back

Partnership