Bearcat Business Organizations

Sara’s Hair Palace is a small, locally owned beauty salon in Bainbridge. This represents what type of business?

• corporation

• partnership

• sole proprietorship

Susie is starting her own online shoe store. What economic term would best describe Susie and what does that term mean?

• Consumer – a person who uses or consumes goods

• Partnership – partner in the lemonade stand

• Entrepreneur- - person who takes a risk to start a new company

Dan has $5,000. He wants to invest his money in the type of business that has the least amount of liability. In which type of business should he invest?

• corporation
• partnership
• proprietorship

A business partnership has ___________ who share the risks and the profits.

• One owner
• No more than three owners
• Two or more owners
• Five or more owners

In which of the following would one person be responsible for all of the risks, unlimited liability, but also receive all of the profits and work for themselves?

• Corporation

• Propreitership

• Partnership

• Dual owner business

Which of the following is an advantage of sole proprietorships:

• Limited liability
• Unlimited financial power
• Dual taxation
• Quick decision making

Which of the following is a disadvantage of sole proprietorships:

• Limited capital
• Control 
• Privacy
• Tax liability

Which of the following is an advantage of general partnerships:

• Limited capital
• Unlimited liability
• Easy to end
• Combined capabilities

Which of the following is an advantage of the corporation as a form of business ownership:

• Less complex requirements
• Separate owners and managers
• Limited liability
• High Taxes

What is a company called that sells stock to raise money?

• Partnership
• Corporation
• Sole Proprietorship
• Limited Partnership