Types of Organizations

Income from a sole proprietorship is

• not taxed

• taxed twice

• taxed three times

• taxed once

One of the disadvantages of having a partnership is .

• double taxations

• high startup costs

• tax on dividends

• unlimited liability

A major advantage for having a corporate is having _____________ liability

• unlimited

• restricted

• limited

• unrestricted

A contractual agreement to use the name and sell the products or services of a company in a designated geographic area is called a___________

• Franchise

• Cooperative

• Non for profit

• Corporation

An organization that is owned and operated by its members is a_________________________

• Corporation

• Cooperative

• Franchize

• Non for profit organization

The easiest way to organize a business is as a___________

• Corporation

• sole proprietorship

• partnership

• Franchise

Which is NOT an advantage of forming a corporation?

• The company continues even after one owner dies.

• There is limited liability for the founder

• Raising capital for startup is easier.

• Profits are taxed twice: at the corporate level and at the shareholder level.

In order to become a corporation, what must a business have?

• over 500 employees

• double taxation

• a corporate charter

• stock certificates

Which business structure contains both the benefits of a small business and a corporation?

• Cooperative

• Car Sharing

• Franchise

• non for profit organization

Nonprofit organizations

• focus on providing services rather than making a profit.

• outnumber sole proprietorships in the United States.

• must still pay taxes.

• do not register with the government.