Business Organizations Quiz Review

Purchasing shares in a company does not make you a part owner of the company.

• True

• False

A disadvantage of a sole proprietorship is that it is easy to form.

• True

• False

A corporation is considered privately held when it does not buy and sell stocks on the open market.

• True

• False

According to the chart above which statement below is true?

• Corporations make up the majority of businesses.

• Partnerships are more popular than sole proprietorships.

• Partnerships make up only 8% of all businesses

• Sole proprietorships do not make up the majority of all businesses.

A __________ is when one partner is required to have unlimited personal liability for the firm.

• Limited Liability Partnership (LLP)

• General Partnership

• Limited Partnership

• Sole Proprietorship

A _________ is a form of business organization recognized by law as a separate legal entity having all the rights of an individual

• Conglomerate

• Franchise

• Partnership

• Corporation

All of the following are disadvantages of sole proprietorships except,

• complete control of the business.

• limited lifetime of the owner.

• limited capital.

• unlimited liability.

Which of the following would be the primary difference between a limited liability partnership, limited partnership and a general partnership

• How many partners are involved.

• Who the main partner is.

• How the profits are shared.

• Whom holds the liability.

Which statement below would be considered an advantage of a corporation?

• unlimited lifetime

• double taxation: profits and earnings

• more difficult to form

• operations controlled by shareholders and board of directors

A business license is not required to legally start a business.

• True

• False