POB OBJ 7.02 MC

The Scott Company decided to sell stock to raise capital. Under what form of business organization does the company operate?

• corporation

• cooperative

• partnership

• proprietorship

A type of business ownership in which one or more of the owners does not have full liability is called a:

• general partnership.

• limited partnership.

• sole proprietorship

• service organization.

A characteristic of a sole proprietorship is that the owner:

• receives all the profit.

• transfers all the risk.

• has access to unlimited funds.

• delegates all functions.

Which type of ownership gives a business an exclusive territory, training and support during start up, and a competitive edge in the market? (Ex: Chick-Fil-A)

• franchise

• corporation

• partnership

• sole proprietorship

José is opening a fish tank cleaning service. He has potential investors, but decides he would prefer to structure the business ownership so that he is ultimately responsible for the success or failure of the business. Which type of business ownership should José select?

• sole proprietorship

• cooperative

• corporation

• partnership

“To form my business, I used all of my savings and borrowed from the bank, and I’m personally liable for all of the debts.” This is an example of which of the following forms of business ownership:

• Sole proprietorship

• Corporation

• Partnership

• Cooperative

The American Red Cross is an example of a(n) ___________ corporation.

• nonprofit

• hybrid

• “S”

• “C”

The Scott Company decided to sell stock to raise capital. Under what form of business organization does the company operate?

• corporation

• partnership

• cooperative

• proprietorship