Business Organizations Review

What are the two different types of corporations?

(a)  

This business organization is also called individual ownership and the owner has unlimited control over the business and enjoys all of the profits.

• Partnership

• Sole Proprietorship

• Corporation

• Franchise

What are some disadvantages of a sole proprietorship?

• Owner is fully responsible for all debts and obligations related to his or her business.

• Creditor would normally have a right against all of his or her assets, business or personal (unlimited liability)

• Capital divided authority

• Lack of continuity in business organization in the absence of the owner

• Difficult to raise capital

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

Advantages of this business include: easier to get money from the bank to start, share skills and share risks.

• Sole Proprietorship

• Franchise

• Partnership

• Corporation

At least two partners and no limited partners. All partners have full responsibility and liability.

• general partnership

• limited liability partnership

• limited partnership

• group partnership

What should a partnership agreement address? Check all that apply.

• capital contribution

• death/disability

• salaries

• dissolution

• decision making

How are sole proprietorships and partnerships alike?

• Contracts are needed to start the businesses.

• Owners have complete control of the business.

• Owners have limited legal liability.

• The businesses are owned by one person.

Which business organization is when two or more persons combine their resources with a view to making a profit?

(a)  

What are the three principal forms of business organizations?

• partnership

• sole proprietorship

• corporation

• labor union

• non profit