A ________ must name a board of directors that will make the major policy and financial decisions for the business.

• limited liability company
• proprietorship
• corporation
• limited liability partnership

The people who make the major policy and financial decisions in a corporation are the 

• investors
• board of directors
• managers
• owners

In what type of business organization is each owner personally liable for all business debts, even if the debts were created by other owners?

• corporation

• partnership

• proprietorship

• corporation

The easiest form of business to start and end is a(n)

• limited liability partnership

• corporation

• franchise

• proprietorship

Groups of people form consumer cooperatives to 

• purchase goods and services more cheaply than they could as individuals
• reduce the amount of property taxes that each member must pay
• generate a profit for each member of the group
• increase their political power in their community

Physicians, web designers, and furniture movers are 

• intermediaries
• nonprofit corporations
• manufacturers
• service businesses

What kind of business is BEST described by these statements?

I am the only owner of my business.

I take all the risks of doing business.

I keep all the profits

• Sole Proprietorship

• Partnership

• Corporation

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

• Sole Proprietorship

• Partnership

• Corporation

• Limited Liability Company

What is a disadvantage of a partnership?

• ease of formation

• owners share responsibility

• limited liability

• possibility of personality conflict

What is the advantage of corporations?

• has one owner

• limited liability

• minimal government regulation

• short life span