Business Ownership & Organizations Quiz

Sole Proprietorship

• A business owned by two or more people

• Business that is important to society but lacks the profit potential to attract private investors

• A business owned and managed by one person

• A business owned by a group of people

Partnership

• A business owned by two or more people

• Special type of corporation that is taxed as if it were a sole proprietorship or partnership. You only risk what you put into the corporation

• A person or company purchases the ability to run a local business under a larger company's brand

• An agreement among two or more businesses to work together to provide a good or service

Corporation

• A business owned and managed by one person

• A person or company purchases the ability to run a local business under a larger company's brand

• A business owned by two or more people

• A business owned by a group of people

Special type of corporation that is taxed as if it were a sole proprietorship or partnership. You only risk what you put into the corporation

• Sole Proprietorship

• Corporation

• Limited Liability Corporation

• Quasi-Public Corporation

A person or company purchases the ability to run a local business under a larger company's brand

• Joint Venture

• Franchise

• Corporation

• Sole Proprietorship

An agreement among two or more businesses to work together to provide a good or service

• Joint Venture

• Partnership

• Franchise

• Corporation

An organization that does not pay taxes and does not exist to make a profit

• Partnership

• Corporation

• Limited Liability Corporation

• Non Profit Corporation

Which of the following is NOT characteristic of entrepreneurs?

• Entrepreneurs are self starters

• Entrepreneurs like to make sure other do most of the work

• Entrepreneurs enjoy working on their own

• Entrepreneurs usually work hard and for long periods

Which of the following is not an advantage of a proprietorship?

• The owner is her own boss

• The owner receives all the profits

• The owner deals with limited red tape

• The owner pays more taxes than corporations do

Which of the following is an advantage of a partnership?

• Partnerships may reduce competition

• Partners may disagree

• Partners are bound by contracts of other partners

• Partnerships have an uncertain life