Business organization

                        What term is defined as an enterprise that produces goods or services, usually to make a profit?

• business organization

• stock

• unlimited liability

• vertical merger

What is a business owned and managed by a single person called?

• conglomerate

• general partnership

• limited partnership

• sole proprietorship

What of the following is a typical start up requirement for a sole proprietorship?

• obtaining a business license

• selling shares on the stock market

• signing a contract with a partner

• hiring officers to run the company

What does the term limited life mean?

• The business is restricted in size.

• There is a ceiling on the amount of business expenses.

• There are many regulations about business activities.

• The business does not continue if the owner leaves.

What do many people consider to be the chief advantage of sole proprietorship

• The owner has unlimited liability.

• The owner keeps all the profits.

• he owner has unlimited start-up funds.

• The owner does not have to obey labor laws.

Which of the following businesses is most likely to be a sole proprietorship

• film studio

• dry cleaner

• kitchen appliance maker

• football helmet manufacturer

Which of the following people is most likely to succeed as a sole proprietor

• someone who likes to make his or her own decisions

• someone who is most comfortable being part of a team

• someone who wants to know what's going to happen ahead of time

• someone who tends to act on the spur of the moment without plans

Which statement is most likely to be made by the owner of a sole proprietorship?

• I did not open my business until I saved enough money to ensure success

• I have more security running my own business than working for someone else.

• The satisfaction of being my own boss is worth the risks I take.

• I rely on government loans and subsidies to stay in business.

Which is a common difficulty for a new sole proprietorship?

• paying all the legal and governmental fees required in the first year

• finding enough workers in order to expand quickly

• having enough money to stay in business while building a customer base

• finding enough investors to purchase company stock

What is the term for a business that is co-owned by two or more people who agree on how responsibilities, profits, and losses will be divided?

• partnership

• general partnership

• limited partnership

• limited liability partnership