Business Structures

The profits and losses are shared between a few owners in this type of business.

• Company
• Social Enterprise
• Partnership
• Sole Proprietorship

This type of business is considered a separate legal entity in the eyes of the law. It is owned by shareholders.

• Cooperative

• Corporation

• Partnership

• Sole Proprietorship

Which of the following is not an advantage of a sole proprietorship?

• Easy to start
• Owner is their own boss
• Owner has unlimited liability
• Owner receives all the profits

All individuals would be good at being their own boss, because we all like to do what we want.

• True
• False

A partnership agreement:

• Helps prevent disagreements
• Encourages disagreements
• Is a waste of time
• None of the above

One advantage of a partnership is that there are more sources of capital available than in a sole proprietorship.

• True
• False

Susan, Phil, Robert, and Martina are all lawyers. After several years of working for big firms, they decide to pull their resources and start their own law practice together. The four of them will make all their business decisions together and will share all of the profits and financial risk. Their new law firm is a 

• partnership
• corporation
• sole proprietorship
• monopoly

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

• Sole Proprietorship

• Corporation

• Partnerships

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

Name the entity that is a separate legal entity from its members, and these members are only liable for the cost of the shares they have purchased

• Partnership

• Sole Trader

• Limited Liability Company

• Franchise