Business Organization

Which of the following is an advantage of sole proprietorship?

• There are almost no requirements to start up a sole proprietorship.

• The owner keeps all the profits.

• The owner makes all the decisions.

• All of the above statements are true.

Which of the following is a disadvantage of sole proprietorship?

• They're hard to start up

• Personal property is protected under bankruptcy

• The owner takes all the risk and responsibility

• The owner doesn't get to keep all the profits

Which of the following is a disadvantage of sole proprietorship?

• The owner has unlimited liability

• The owner has to share business decisions

• The owners are protected from all the risk and responsibility

• The owners doesn't get to keep all the profits

Limited life applies to ______ .

• corporations

• sole proprietorships

• nonprofit organizations

• multinationals

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

• One owner

• Two or more owners

• No more than three owners

• Five or more owners

All partners are equally responsible for management and debts.

• Sole proprietorship

• General Partnership

• Limited Partnership

• Venture Capitalist

A business’s net income is defined as ______ .

• total sales before expenses

• total income after expenses

• total dividends paid to investors

• total expenses before sales

This form of corporate ownership giving one vote per share for stockholders.

• common stock

• preferred stock

• investor

• Board Member

A form of stock without vote, in which stockholders get their investments back before common stockholders do

• Common stock

• Preferred stock

• Investor

• Board Member

According to figure 8.1, the type of organization with the most sales in the United States is?

• Corporations

• Partnerships

• Sole Proprietorships

• Franchises