Forms of Business Organization

It is an artificial being created by the operation of law, having right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence is called_________.

• Cooperative

• Corporation

• Partnership

• Sole Proprietorship

A document which includes the name, objectives, powers, and registered address of a corporation is called ______.

• Constitution of Corporation

• By-laws of corporation

• Articles of Incorporation

• Articles of Partnership

Tony and Alex own a saloon together. They share equal responsibility and each receive 50% of the profits. What form of business organization is this?

• Sole Proprietorship

• Partnership

• Corporation

• Cooperative

How is a general partnership organized?

• Every partner shares equally in both responsibility and liability

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

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

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

Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

• Sole Proprietorship

• Partnership

• Corporation

• Cooperative

The owners of a corporation are called

• Directors

• Partners

• Shareholders

• Founders

The type of business ownership in which all business decisions are the sole responsibility of the owner.

• Sole proprietorship
• Partnership
• Corporation
• Franchise

Income is taxed twice for this form of business.

• Sole proprietorship
• Partnership
• Corporation
• Franchise

This type of business organization makes it easier to secure financing because more than one person may apply for credit.

• Sole proprietorship
• Partnership
• Corporation
• Franchise

Owners of this type of organization may receive dividends.

• Sole proprietorship
• Partnership
• Corporation
• Franchise