Ch. 8 Business Organizations

In what type of business organization is each owner personally liable for all business debts, even if the debts were created by other owners?

• Corporation

• Partnership

• Proprietorship

• Corporation

Which of the following is the definition for sole proprietorship

• A business investment that involves renting or leasing another successful business model in which you have to pay royalties to the parent company.

• A 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.

• An 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.

• A 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?

• A business investment that involves renting or leasing another successful business model in return for paying royalties to the parent company.

• An 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.

• An 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

• A 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 Partnership?

• A business investment that involves renting or leasing another successful business model.

• An 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.

• An 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.

• A 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 partnership?

• They are difficult to start.

• Management can be challenging between two or more people.

• Partnerships can usually attract financial capital more easily than proprietorships.

• Splitting of profits.

Payments of a company's profit to their shareholders is called:

• Shares

• Dividends

• Bonds

• Capital

Which is NOT a basic type of business ownership?

• Proprietorship

• Partnership

• Corporation

• Retail

Nike, McDonald's, and Google are examples of a:

• Partnership

• Franchise

• Privately-Held Corporation

• Publicly-Held Corporation

Which of the following is a disadvantage of a corporation?

• It is easy to raise financial capital using stocks, bonds, or loans.

• The double taxation of corporate profits.

• It is easy to get a charter to start a corporation.

• Owners and shareholders have total control over what happens with the business.

Which of the following is the most common form of business organization?

• Corporations

• Sole Proprietorships

• Franchises

• Partnerships