Q3.QC2.SOCIAL SCIENCE 9

 Jordan is starting a small home-based consulting business. He possessed computer knowledge but lacks marketing skills. The form of business organization that he might consider establishing is a(n) ___.

• corporation

• sole proprietorship

• monopoly

• partnership

One advantage of this type of business is that the owner is in full control and keeps all the profit.

• Partnership

• Sole Proprietorship

• Corporation

• Franchise

A sole proprietorship is a business where all of the following are true EXCEPT

• the owner has complete control over decision making

• the entrepreneur can sell stock to increase its capital

• the entrepreneur is responsible for all losses

• profits are taxed once

Each owner of this form of business must create an agreement regarding the structure of the business and the roles of each owner

• partnership

• sole proprietorship

• corporation

• cooperative

Which type of business organization has the advantage of limited liability but the disadvantage of less control over business decisions?

• perfect competition
• partnership
• sole proprietorship
• corporation

Which of the following is TRUE?

• Sole proprietorship pays business income tax.

• Partnerships need to register to SEC.

• Partnerships are legal persons.

• A corporation can be owned by one person

Which of the following is NOT TRUE?

• One disadvantage of sole proprietorship is relative instability.

• Partnership has the potential to grow.

• Corporation is a business owned by many persons.

• Nonstock corporations are profit-oriented corporations.

TRUE or FALSE.

All the partners in a general partnership are involved in the management and financial obligations of the business

• TRUE

• FALSE

TRUE or FALSE.

A sole proprietorship has the right of a legal person

• TRUE

• FALSE

Which type of business organization has the advantage of limited liability but the disadvantage of less control over business decisions?

• perfect competition
• partnership
• sole proprietorship
• corporation