Econ 3-2 Business Organizations

Disadvantages include unlimited liability, difficult to raise financial capital, difficulty attracting qualified employees, limited life

• Sole Propriotorship
• Partnership
• Corporation

Disadvantages include limited life and
the potential for conflict between partners

• Sole Propriotorship
• Partnership
• Corporation

Disadvantages include double taxation and more government regulation

• Sole Propriotorship
• Partnership
• Corporation

Characteristics include owned by two or more people and may be general or limited

• Sole Propriotorship
• Partnership
• Corporation

You must file for permission to form from the national or state government

• Sole Propriotorship
• Partnership
• Corporation

Advantages include limited liability for owners, unlimited life, and ease of transfer of ownership. 

• Sole Propriotorship
• Partnership
• Corporation

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

• Sole Propriotorship
• Partnership
• Corporation

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 

• partnership
• corporation
• sole proprietorship
• monopoly

Which type of business organization places all the liability on a single owner?

• Sole Proprietorship

• Partnership

• Corporation

Which type of business organization is managed by a Board of Directors?

• Sole Proprietorship

• Partnership

• Corporation