ECO 7 Business Organizations

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

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

Joe is starting a small home-based consulting business. He possesses computer knowledge but lacks the marketing skills that his friend does who also wants to start a business. The form of business ownership that Joe might consider establishing is a(n)

• corporation

• sole proprietorship

• monopoly

• general partnership.

Which of the following is a disadvantage of corporations:

• High taxes
• Unlimited life
• Unlimited liability
• financial power

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 corporation are called

• Directors
• Partners
• Shareholders
• Founders

Most expensive to start

• Sole Proprietorship
• Partnership
• Corporation

Shortest lifespan with the least amount of capital resources

• Sole Proprietorship

• Partnership

• Corporation

Ownership represented by stock

• Sole Proprietorship
• Partnership
• Corporation

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

Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.

• Sole Proprietorship
• Partnership
• Corporation
• Franchise