Forms of Business Organizations

In a corporation, owners share profit, but liability is limited to __________.

• investment

• theft

• distribution

• production

A form of business organization that is authorized to act as a legal entity regardless of the number of owners.

• Corporation

• Partnership

• Sole Proprietorship

• None of the Choices

What is a disadvantage of partnerships?

• ease of formation

• limited liability

• owners share responsibilities

• possibility of personality conflict

What is the advantage of corporations?

• minimal government regulation

• short life span

• limited liability

• has one owner

In which type of organization does one person take all the risks?

• Corporation

• Cooperative

• Partnership

• Sole Proprietorship

Floral Shops, Bookstores, and Farms are examples of what type of business?

• Sole Proprietorship

• LLC

• Corporation

• None of the Choices

Nike, IBM, and Google are examples of what type of business?

• Partnership

• Corporation

• Sole Proprietorship

• None of the Choices

A father who wants to take his son into the business with him should form this type of business.

• Sole Proprietorship

• Corporation

• Partnership

• LLC

How is a general partnership organized?

• Every partner shares equally in both responsibility and liability.

• No partner is responsible for the debts of the partnership beyond his or her investment.

• The doctors, lawyers, or accountants who form a general partnership hire others to run the partnership.

• Only one partner is responsible for the debts of the partnership.

Agricultural, Housing, and Credit Unions are examples of what type of business?

• Partnership

• Corporation

• Sole Proprietorship

• Cooperative