2.3 Legal Forms of Business Ownership

What is the most common form of business ownership?

• Corporation
• Company
• Sole Proprietorship
• LLC

What is a form of business ownership in which 2 or more people jointly owns a business

• Sole Proprietorship
• Company
• Partnerships

What is the name of a person who owns part of a corporation?

• Stakeholder
• Shareholder
• Trust Agent
• Chairman

This type of business is subject to many more laws and are more difficult to form.

• Proprietorship
• Partnership
• Corporation
• Franchise

The major policy and financial decision makers of a corporation are determined by the...

• CEO/GM/President
• Chairman of the Board
• Shareholders
• Board of Directors

Owned by one individual.

• Proprietorship
• Partnership
• Corporation
• None of the above

Owned by two or more individuals.

• Proprietorship
• Partnership
• Corporation
• None of the above

Owners share the risks and the profits.

• Proprietorship
• Partnership
• Corporation
• None of the above

This type of organization is a legal entity separate from its owners.

• Sole proprietorship
• Partnership
• Corporation
• Franchise

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

• Partnership
• Sole Proprietorship
• Corporation
• Franchise