BUS 115 Chapter 15 Business Organization

This business organization type is the oldest and most common.

• parternship
• corporation
• sole proprietorship
• limited partnership

Business organization owned by two or more people.

• partnership
• corporation
• franchise
• sole proprietorship

Corporations have perpetual existence.

• True
• False

The main disadvantage of a corporation is

• has unlimited liability
• double taxation
• historically is short lived
• has a simple structure

The main disadvantage of a sole proprietorship

• you have limited liability
• hard to call in sick
• taxes are high
• you have unlimited liability

A beginning business enterprise

• fledgling business
• start-up
• business incubator
• proprietorship

All the business forms listed below have limited liability EXCEPT the:

• Limited liability company
• General Partnership
• "S" Corporation
• Corporation

Person who organizes, manages, and assumes the risk of a business in order to gain profits

• entrepeneur
• investor
• proprietor
• limited partnership

Extra supply of items used in a business such as goods for sale.

• stock
• inventory
• net worth
• liabilities

The business form that offers the limited liability of a corporation and the tax status of a flow-through entity is:

• closely held corporation
• general partnership
• sole proprietorship
• limited liability company