Quiz - Types of Business Organizations

This type of business is owned by one person.

• Partnership

• Sole Proprietorship

• Corporation

• Franchise

These types of business organizations function for the public good but not to make money - like the Red Cross or a church.

• Non-profits

• Cooperatives

• Franchises

• Proprietorships

This is a type of business in that pays fees to a parent company in return for the right to sell a certain product or provide a certain, specific service.

• Non-profit

• Cooperative

• Franchise

• Proprietorship

Characteristics include owned by two or more people and may be general or limited

• Sole Propriotorship
• Partnership
• Corporation

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

What is ONE advantage of a Corporation?

• Difficult to start
• Make all of the decisions
• Easy to raise money!

What is a business owned by stockholders/investors but operated by others?

• Sole Proprietorship
• Partnership
• Corporation

What is a major advantage of a business that is a partnership rather than a sole proprietorship?

• The responsibility for the business is shared
• The business is easy to set up
• The partners are not responsible for business debts
• The business is easy to sell

Which of the following is NOT a business organization?

• Sole Proprietorship
• Corporation
• Perfect Competition
• Partnership

Advantages include limited liability for owners, unlimited life, and ease of transfer of ownership. 

• Sole Propriotorship
• Partnership
• Corporation