Forms of Business, Roles of Gov't, and Market Structure

What is the most common form of business ownership?

• Corporation
• Company
• Sole Proprietorship
• LLC

This type of business is subject to many more laws and are more difficult to form.

• Proprietorship
• Partnership
• Corporation
• Franchise

This type of organization is a legal entity separate from its owners.

• Sole proprietorship
• Partnership
• Corporation
• Franchise

The major policy and financial decision makers of a corporation are determined by the...

• CEO/GM/President
• Chairman of the Board
• Shareholders
• Board of Directors

Which of the following best describes the term limited liability? If the business fails:

• Personal possessions of the owner can be taken to pay any debts

• The owner is personally liable for all the debts of the business

• There is no limit on the amount the owner has to pay to settle debts

• The owner only loses the amount invested in the business

Which legal structure would an individual wishing to start-up a small business choose because it is quick, easy and inexpensive to set up?

• Sole proprietorship

• Partnership

• Privately Held Corporation

• Corporation

Which of the following is a drawback for an entrepreneur setting up a business as a sole proprietorship?

• Profit is shared

• Financial accounts are kept private

• Limited liability

• Unlimited liability

This type of business is owned by stockholders.

• Sole proprietorship
• Partnership
• Corporation
• Franchise

The type of business ownership in which all business decisions are the responsibility of the owner.

• Sole proprietorship
• Partnership
• Corporation
• Franchise

Income is taxed twice for this form of business.

• Sole proprietorship
• Partnership
• Corporation
• Franchise