Business Organizations (Economics)

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

• corporation
• partnership
• sole proprietorship

Susie is starting her own lemonade store. What economic term would best describe Susie and what does that term mean? 

• Consumer – a person who uses or consumes goods
•  Partnership –  partner in the lemonade stand
• Entrepreneur-  - person who takes a risk to start a new company

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
• partnership
• proprietorship

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

• One owner
• No more than three owners
• Two or more owners
• Five or more owners

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

• Corporation
• Propreitership
• Partnership
• Dual owner business

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

• Proprieter
• Partner
• Entrepreneur
• Incorporater

Decreased government spending may result in _____ taxes. 

• higher
• more
• lower

Which of the following is an advantage of sole proprietorships:

• Limited liability
• Unlimited financial power
• Dual taxation
• Quick decision making

Which of the following is a disadvantage of sole proprietorships:

• Limited capital
• Control 
• Privacy
• Tax liability

Which of the following is an advantage of general partnerships:

• Limited capital
• Unlimited liability
• Easy to end
• Combined capabilities