Business Organizations Quiz

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

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

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

• corporation
• partnership
• sole proprietorship

What is a company called that sells stock to raise money?

• Partnership
• Corporation
• Sole Proprietorship
• Limited Partnership

How is a corporation different from a sole proprietorship?

• Corporations are owned by only one person
• Corporations can sell stock to raise money for the business. 
• Sole proprietorships have limited liability for the owners.
• Sole proprietorships require a legal charter to start the business.

Which business type makes up approximately 75% of all businesses?

• Sole Proprietorship
• Partnership
• Corporation

Which business type has the most sales in the USA?

• Sole Proprietorship
• Partnership
• Corporation

Why would a company need to issue stock?  

• To increase its' customer base.
• To raise money.
• To stop the government from regulating it.
• To show customers that it's successful.

This type of business is owned by one person.

• Partnership
• Sole Proprietorship
• Corporation
• Franchise

Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

• Partnership
• Sole Proprietorship
• Corporation
• Franchise