Lesson 2.2: Business Organizations & Mergers

Multiple Choice

Which of the following is a characteristic of a sole proprietorship?

• Owned and run by one person

• Owned by shareholders

• Requires multiple partners

• Difficult to form

Multiple Choice

Which of the following is an advantage of a sole proprietorship?

• Unlimited liability

• Owner keeps all profits

• Difficult to go out of business

• Limited control of company

Fill in the Blanks

A business that is jointly owned by two or more people who share the risk and profits is called a

.

Multiple Select

Which of the following are disadvantages of a partnership?

• Share profits

• Unlimited liability

• Double taxation

• Conflict between partners

Multiple Choice

Which of the following is NOT a disadvantage of a corporation?

• Difficult to start up

• Double taxation

• Limited liability

• Loss of control

Multiple Choice

Which type of stock gives its holders voting rights in a corporation?

• Common Stock

• Preferred Stock

• Corporate Bonds

• Mutual Funds

Multiple Select

Which of the following are reasons companies may choose to merge?

• Increase efficiency

• Acquire a new product

• Eliminate a rival

• Diversify product lines

Fill in the Blanks

A conglomerate is a firm that has at least

businesses making unrelated products.

Multiple Choice

Based on the brand map, which company owns both Tide and Pampers?

• Nestlé

• Procter & Gamble (P&G)

• Unilever

• Kraft

Multiple Choice

Which of the following is NOT a way businesses are organized in a market economy?

• Sole proprietorship

• Partnership

• Corporation

• Franchise