Business Organizations

Business Organizations

By Karen Yancy

Business Organization is​

an entity aimed at carrying on commercial enterprise by providing goods or services, to meet needs of the customers.​

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Multiple Choice

What do we call a person who is willing to take the risks of starting a business in order to make a profit?

• proprietor

• entrepreneur

• incorporator

• partner

Multiple Choice

An entrepreneur can choose to have which type of business organization?

• sole proprietorship

• partnership

• corporation

• all of the above

Multiple Choice

Being responsible for something, especially by law is the definition of

• investment

• revenue

• profits

• liability

Sole proprietorship

Partnership

Corporation

​

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​Three types of business organizations are

​

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Sole Proprietorship is a business owned by a single individual.​

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Multiple Choice

 In which of the following would one person be responsible for all of the risks but also receive all of the profits?

• Corporation

• Sole Proprietorship

• Partnership

Multiple Choice

Which of the following is NOT an advantage or sole proprietorship

• unlimited liability

• very little government control

• income taxed once

• greater freedom

Multiple Select

Which of the following are disadvantages of sole proprietorship? (2 answers)

• difficult to get financial capital

• long work hours

• low start-up costs

• more profit

Multiple Choice

Which is ONE disadvantage of Sole Proprietorship?

• less direct control

• hard to raise money

• disagreements

Multiple Choice

Which business type makes up approximately 70% of all businesses?

• partnership

• corporation

• sole proprietorship

Multiple Choice

Sara’s Hair Palace is a small, locally owned beauty salon in Sterling. This represents what type of business?

• corporation

• partnership

• sole proprietorship

A partnership is

 a business owned by two or more individuals.​

General partners have unlimited liability and have full management control of the business. Limited partners have little to no involvement in management, but also have liability that's limited to their investment amount in the business.

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Advantages Disadvantages​

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Multiple Choice

A business partnership has ___________ who share the risks and the profits.

• one owner

• two or more owners

• no more than three owners

• five or more owners

Multiple Choice

Which of the following is an advantage of general partnerships:

• limited capital

• easy to end

• unlimited liability

• combined capabilities

Multiple Choice

Which of the follow is NOT an advantage of partnerships?

• divided profits

• easy to form

• low start-up costs

• divided liability

Multiple Select

Which of the following are disadvantages of partnerships? (3 answers)

• divided authority

• can be difficult to find right partner

• divided liability

• potential disagreements among partners

Liability in different types of partnerships​. You will use this information to answer question on next slide

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Multiple Choice

Which of these businesses could be the partnership described in the bottom row of the table?

• A convenience store is owned by equal partners, a mother, a father, and 

  their adult daughter.  All three work full time at the convenience 

  store.

• A dry-cleaning store establishment is owned and operated by one man.

  His brothers have invested some money in the business but don’t

  have any responsibility for it.

• A canoe rental shop is owned and operated by one woman.  She has taken

  out loans from two different banks.

A corporation is​

a business operation that has been declared a separate legal entity guided by a group of officers known as a board of directors ​

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Advantages Disadvantages​

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Multiple Choice

What is a business owned by stockholders/investors but operated by others?

• sole proprietorship

• partnership

• corporation

Multiple Choice

What is a company called that sells stock to raise money?

• sole proprietorship

• partnership

• corporation

Multiple Choice

Which of the following is an advantage of the corporation as a form of business ownership:

• less complex requirements

• limited liability

• separate owners and managers

• high taxes

Multiple Choice

 Dan has $5,000. He wants to invest his money in the type of business that has the least amount of liability. In which type of business should he invest?

• corporation

• sole proprietorship

• partnership

Multiple Choice

Which business type has the most sales in the USA?

• sole proprietorship

• partnership

• corporation

Multiple Choice

How is a corporation different from a sole proprietorship?

• Corporations are owned by one person.

• Sole proprietorships have limited liability for the owners.

• Corporations can sell stock to raise money.

• Sole proprietorships require a legal charter to start the business.

A franchise is​

a business that gives the right to another person or business to sell goods or services using its name. It does this by providing the person or other business with a license. Buying into a franchise is an alternative to setting up a new business.​ A franchise is often a local small business. The owner is not likely to be a Steve Jobs figure, but more likely to be a local entrepreneur.

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Advantages Disadvantages​

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Multiple Choice

What is a franchise?

• where a business sells the rights to their brand

• where you have full control

• where you keep all the profits

Multiple Choice

What incentive does a parent company have for providing training and support to a franchise owner?

• Royalties might increase because a better-trained franchise owner will make

   more money

• Royalties might decrease because a better-trained franchise owner will

   make more money

• Standard fees might increase because a better-trained franchise owner will

   make more money

• Standard fees might decrease because a better-trained franchise owner

   will make more money

Examples of Business Organizations​

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Multiple Choice

Local grocery store, local clothes store, and freelance graphic designer are examples of

• sole proprietorships

• partnerships

• corporations

Multiple Choice

Apple and Walmart are examples of

• sole proprietorship

• partnership

• corporation

Multiple Choice

When William Proctor and and James Gamble started their business in 1837 it was a

• sole proprietorship

• partnership

• corporaiton