Business Organizations

This type of business is owned by one person.

• Partnership
• Sole Proprietorship
• Corporation
• Franchise

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

A partnership in which all partners assume full personal liability for debts of the firm

• limited partnership
• trading partnership
• non-trading partnership
• general partnership

Partners who are only responsible up to the extent of their investment

• limited partnership
• trading partnership
• non-trading partnership
• special partnership

What is a major advantage of a business that is a partnership rather than a sole proprietorship?

• The responsibility for the business is shared
• The business is easy to set up
• The partners are not responsible for business debts
• The business is easy to sell

Which of the following is an advantage of the corporation as a form of business ownership:

• Less complex requirements
• Separate owners and managers
• Limited liability
• High Taxes

The owners of a public corporation are called

• Directors
• Partners
• Shareholders
• Founders

What is a liability?

• a company's legal obligation to report to the SEC

• a company's legal ability to make decisions on the factors of production

• a company's legal financial debts or other obligations resulting from its daily business operations

• a company's legal financial decisions based on the overall balance sheet

What is a business owned by stockholders/investors but operated by others?

• Sole Proprietorship

• Partnership

• Corporation

• Limited Liability Partnership

Disadvantages of this type of business organizations can include limited life and

the potential for conflict between partners

• Sole Propriotorship

• Partnership

• Corporation

• Franchise