EXAM REVIEW AND PERFORMANCE TASK

Please choose which of the following are the advantages of sole proprietorship

• not easy to set up

• easy to set up

• owner has full control over business decisions

• owner has limited control over business decisions

Which of the following is/are excluded of the disadvantages of sole proprietorship.

• no independent legal status, the owner is liable for the liabilities of the business

• has independent legal status, the owner is liable for the liabilities of the business

• limited source of funds

• more source of funds

Which of the following are the advantages of a partnership?

• more source of capital, resources, knowledge, and skills from more people versus in a sole proprietorship

• limited source of capital, resources, knowledge, and skills from more people versus in a sole proprietorship

• not easy to set up, manage, and control compared to a corporation

• easier to set up, manage, and control compared to a corporation

Which of the following is excluded to the disadvantages of a partnership:

• no independent legal status and general partners can be liable for the liabilities of the business

• possibility of disagreements between partners

• limited source of capital and restrained growth potential compared to a corporation

• limited source of capital and restrained growth potential compared to a sole proprietorship

Which of the following is not one of the advantages of a corporation?

• prestige from passing more formal requirements

• shareholders enjoy limited liability since the company is an independent legal entity separate from its owners

• extensive sources of capital through the issuance of stocks and bonds, and with it an amplified growth potential

• ownership can be easily transferred through stocks

• None of the above

Which of the following is not one of the disadvantages of a corporation?

• more difficult to set up and manage due to greater requirements and heavier government scrutiny

• stockholders of big corporations have unlimited involvement in business operations and decisions

• double taxation, taxes are charged on the company's net income, and stockholders are also taxed on dividends

  received from the company

• stockholders of big corporations have limited involvement in business operations and decisions

Explain the interconnection between organization and management.

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