Choosing a Form of Business Ownership (Chapter 4)

A business that is owned (and usually operated) by one person is referred to as a,

• sole proprietorship

• partnership

• corporation

• joint venture

There are approximately 24 million sole proprietorships in the United States, many of which are common in,

• retailing [a]

• finance [b]

• agriculture [c]

• both a and c

• all of those listed

This is the business venture which is defined as a voluntary association of two or more persons to act as co-owners of a business for profit.

• partnership

• sole proprietorship

• join venture

• syndicate

In a partnership, a general partner,

• assumes full or shared responsibility for operating a business

• is active in day-to-day business operations

• can enter into contracts on behalf of the other partners

• assumes unlimited liability for all debts

• all of those listed

In a partnership, a limited partner is a person who,

• invests money in the business

• has no management responsibility

• has no liability for loss beyond his or her investment in the partnership

• receives a portion of profits and tax benefits

• all of the above

The articles of partnership refers to,

• an agreement listing and explaining the terms of a partnership

• the agreement signed by both partners of a business and its shareholders

• the document sent to the Secretary of State of the state in which a partnership is formed officially setting in motion the process through which a business can legally produce its product and/or offer its service(s)

• the legal powers a recognized partnership has within the American legal system

A corporation is defined as a business entity,

• recognized in the law as an artificial person, with most of the legal rights of a real person

• trading on the New York Stock Exchange

• with an annual revenue of at least $350 million that employs over 100,000 people

• with at least 100 stockholders in 10 different nations

Under law, a corporation can,

• buy or sell property [a]

• sue or be sued [b]

• enter into binding contracts [c]

• both a and c

• all of the above

The shares of ownership of a corporation are called,

• certificate of deposits

• dividends

• shares

• stocks

People who own a share of a corporation are called,

• board members

• corporate officers

• executive members

• stockholders