Economics Ch. 3

business owned and run by a single person who has all the rights to all profits and unlimited liability for all debts of the firm

• Sole

  Proprietorship

• Partnership

• Corporation

unlimited liability is the requirement that an owner is personally and fully responsible for all losses and debts

• True

• False

The corporation is the easiest form of business to start

• True

• False

In a sole proprietorship the business is recognized as its own separate legal entity

• True

• False

form of partnership where all partners are equally responsible for management and debts

• general partnership

• limited partnership

The articles of partnership can save a lot of headache and heartache in a partnership

• True

• False

Banks are more likely to give a sole proprietorship a loan than a partnership

• True

• False

The___ is a form of business organization recognized by the law as a separate legal entity

• sole proprietorship

• partnership

• corporation

The charter is a government document that gives permission to create a corporation

• True

• False

What is the most common form of business organization in the US

• sole proprietorship

• corporation

• limited partnership

• general partnership