Formative Assessment on Business Organization

It is an entity formed for the purpose of carrying on commercial enterprise.

• Business Organization
• Business License
• Assets
• Stocks

How many forms does the business organization have?

• 1
• 2
• 3
• 4
• Option 5

It is also referred to as a sole trader or a proprietorship—is an unincorporated business that has just one owner who pays personal income tax on profits earned from the business.

• Sole Proprietorship
• Government
• Partnership
• Corporation
• Option 5

It consists of two or more people who combine their resources to form a business and agree to share risks, profits and losses.

• Partnership
• Sole Proprietorship
• Corporation
• Government

It is a legally established entity that can enter into contracts, own assets and incur debt, as well as sue and be sued—all separately from its owner(s).

• Sole Proprietorship
• Corporation
• Government
• Partnership

What is not a form of business organization?

• Partnership
• Sole Proprietorship
• Corporation
• Stocks

An enterprise that produces goods or services usually in order to make a profit

• Partnership
• Sole Partnership
• Corporation
• Government

These are some of the advantages of sole proprietorship EXCEPT one

• easy to open or close
• few regulations
• freedom and control
• connection through partnership

These are all disadvantages of a sole proprietorship EXCEPT

• limited finds
• limited life
• unlimited liability
• few regulations

These are all advantages of corporations EXCEPT one

• access to resources
• professional managers
• limited liability
• limited finds