Forms of Business Organization

1.   A business that is owned and controlled by one person

is a:

• a. cooperative   

• b. partnership    

• c. sole proprietorship *  

• d. corporation

2.     Individuals who invest in a corporation by buying stock are called?

• a. subsidiaries 

•     b. conglomerates    

• c. cooperatives     

• d. stockholders *

3. A business that provides goods or services without seeking profits for  distribution to individual members is a:

•  

  a. not-for-profit organization  *

• b. partnership   

• c. cooperative    

• d. corporation

4. Business organization that is treated by law as if it were an individual person(can sue and be sued) is a?

• a. cooperative    

• b. partnership    

• c. sole proprietorship    

• d. corporation *

5. Business that is owned and controlled by two or more people is a:

• a. cooperative 

•   b. partnership *    

• c. sole proprietorship  

•    d. corporation

6. Certificates of ownerships in a corporation are called:

• a. bonds     

• b. dividends  

•   c. stocks  * 

•   d. interest  

7. In this type of partnership, the partners enjoy equal decision-making authority and have unlimited liability.

• a. limited   

•   b. general *   

• c. conglomerate      

• d. horizontal 

8. The amount of money paid to an investor in return for his investment.

• a. bonds    

• b. dividends *    

• c. stocks   

• d. liability

9. In this type of partnership, the "silent" partner invest in the company but remains in a non-active role.

  

• a. limited *    

•   b. general   

• c. conglomerate   

•   d. horizontal

10. Although they usually have no voice in how the company is run (can't vote),owners of this type of stock are guaranteed dividends.

• a. principal    

• b. liability          

• d. common    

• e. preferred *