Ch 6 Intro to Bus

What is not one of the three main forms of business organizations?

• Dividends

• Partnership

• Corporation

• Sole proprietorship

Which is false of a sole proprietorship?

• There is one owner

• All decisions are made by one person

• Easy to start up

• Revenue for a sole proprietorship is usually higher than that for a corporation

What does unlimited liability mean to the owner of a business?

• The owner is responsible for all the company's debts

• THe owner has limited credit

• The corporation is dissolved when the owner dies

• The company will fail if the owner does not have all the skills needed to run the business

Which type of business organization is a partnership most like?

What is an advantage of forming a corporation?

• Profits are taxed twice: at the corporate level and at the shareholder level

• The company continues even after one owner dies

• Costly to start up

• There are many voices and opinions when making decisions

In order to become a corporation, what must a business have?

• Stock certificates

• A corporate charter

• Double taxation

• Over 500 employees

Which business structures contains both the benefits of a small business and a corporation?

• Franchise

• Cooperative

• Car sharing

• Nonprofit organization

Which type of business makes a finished product, such as an automobile?

• Industry

• Manufacturer

• Processor

• Produce

How does a product get from a manufacturer to a wholesaler?

• By a processor

• By a producer

• By an intermediary

• By a retailer

Where do stores get the products that they sell?

• Industries

• Intermediaries

• Wholesalers

• Retailers