1.2 Types of Business Organizations

What term means that if a business fails, the owner is responsible for paying back all debt, even if that means paying with their personal funds/assets?

• Limited Liability

• Unlimited Liability

• Incorporation

• Lack of continuity

A disadvantage to Corporations is Limited Liability.

• True

• False

Which of the following is an example of a private sector organization?

• US Post Office

• Apple

• Unable to determine based on information given

• None of the above

Which of the following is an example of a public sector organization?

• US Post Office

• Apple

• Unable to determine based on information given

• None of the above

All public sector organizations are publicly traded organizations that you can own shares of their stock.

• True

• False

All charities are considered non-profit organizations.

• True

• False

What advantages do members of a Cooperative receive?

• Cooperatives do not have members

• Members receive no advantages

• Members typically receive discounts if they take on part responsibility

• Members receive shares of stock of the Cooperative at a lower price than the public

What is purpose of micro-financiers?

• To make a profit

• To help CEOs expand their corporation

• To help those who would not otherwise obtain financing, receiving funding through small loans

• None of the above

3. Mary opened a dance studio. She receives all the profits from her students’ lessons.

• Sole Proprietorship

• Partnership

• Corporation

Unger and Unger is a law firm consisting of two brothers who started their own business. They both are responsible for all profits and risks that their firm will have.

• Sole Proprietorship

• Partnership

• Corporation