Intro to Business Ch. 6 Test

True or False: As your business expands, you can change the form of ownership.

• True

• False

True or False: A sole proprietorship is owned by several people.

• True

• False

True or False: If you own more than half the stock of a corporation, you get to keep all the profits.

• True

• False

True or False: A corporation is owned by the stockholders

• True

• False

Which of the following is a business owned by two or more persons who share the risks and rewards?

• partnership

• sole proprietorship

• cooperative manufacturer

• retail producer

Which of the following is a license to run a corporation?

• shares of stock

• partnership agreement

• corporate charter

• corporation license

A corporation is controlled by this.

• corporate license

• Small Business Administration

• stocks

• board of directors

The American Red Cross is an example of which type of business?

• sole proprietorship

• partnership

• franchise

• nonprofit organization

Ocean Spray, an organization owned and operated by cranberry growers, is an example of this type of organization.

• cooperative

• corporation

• limited partnership

• nonprofit organization

What are the advantages and disadvantages of owning a sole proprietorship?