Types of Business Organizations

Which of the following is the definition for sole proprietorship

• business investment that involves renting or leasing another successful business model
• 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
• unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
• form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued

Which of the following is the definition for Franchise

• business investment that involves renting or leasing another successful business model
• 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
• unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
• form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued

Which of the following is the definition for Corporation?

• business investment that involves renting or leasing another successful business model
• 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
• unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
• form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued

Which of the following is an advantage of a sole proprietorship

• easy to start up
• Decisions do not require the approval of a co-owner, boss, or other "higher-up
• the owner can keep the profits of successful management without having to share them with other owners. 
• All the other options

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

• it is easy to start
• he owner is personally and fully responsible for all losses and debts of the business. If the business fails, the owner’s personal possessions may be taken away to satisfy business debts.
• requires a partner
• it is easy to raise the financial capital to start

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

• Sole Propriotorship
• Partnership
• Corporation

Under perfect competition,

• products are similar but not identical.
• numerous restrictions prevent firms from entering the market.
• no seller can sell a product above the prevailing market price.
• a single seller can affect price.

Which scenario is an example of a monopoly? 

• A local water company is the sole provider of water for a small town.
• A dry cleaner specializes in environmentally friendly cleaning methods.  
• A farmer produces green beans for sale at a farmer's market.
• A small number of cereal companies produce most of the cereal on the market.

Which type of business organization has the advantage of limited liability but the disadvantage of less control over business decisions?

• perfect competition
• partnership
• sole proprietorship
• corporation

A person who takes a risk to produce goods and services in search of profit - 

• entrepreneur
• magistrate
• profiteer
• baliff