Ch 8 Business Organizations & Ch 9 Labor

Sole proprietorships ____________________________.

• are complicated to establish

• make up about 6% of all businesses

• are the most common form of business in the U.S.

• offer owners little control over operations

Some benefits to sole proprietorships are:

• relatively few regulations

• full control

• sole receiver of profit

• all of the above

What advantage does a partnership have over a sole proprietorship?

• The responsibility for the business is shared.

• The business is easy to start up.

• The partners are not responsible for the business debts.

• The business will easily fail.

For the Shark Tank project, if you worked with a partner, you were a __________.

• sole proprietorship

• partnership (general, limited or limited liability)

• coporation

• monopoly

What is a corporation?

• two owners responsible for each other's actions

• an individual responsible for raising capital

• business that does not pay taxes

• a legal entity owned by individual stock holders

Which type of business organization can you most commonly purchase stock/shares from?

• a corporation

• an limited liability partnership

• a sole proprietorship

• taxation

What is an example of a corporate combination?

• horizontal mergers

• vertical mergers

• a conglomerate

• all of the above

What are some disadvantages to incorporation?

• difficulty and expense of start-up

• loss of control

• double taxation

• all of the above

A multinational corporation or MNC is a large corporation headquartered in one country and have subsidiaries throughout the world. True or False?

• true

• false

Which company or companies is/are an example of a multinational corporation?

• Midland High

• Apple (TM)

• Starbucks (TM)

• Both B & C