Chapter 4: Forms of Business Ownership

A business with one owner is known as a:

• Company

• Sole trader

• Partnership

A business run by 2-20 people and has unlimited liability is known as a:

• Company

• Sole trader

• Partnership

The two forms of business ownership with unlimited liability are:

• Sole trader

• Public company

• Partnership

• Private company

Advantages of a sole trader are:

• Limited liability

• The owner makes all the decisions

• The owner takes all the profit

• Can raise substantial capital

Advantages of a partnership are:

• The partners split the profit

• Unlimited liability

• Raise more capital than a sole trader

• Share the workload

What is the name of a person who owns part of a corporation?

• Stakeholder
• Shareholder
• Trust Agent
• Chairman

What is the most common form of business ownership?

• Corporation
• Company
• Sole Proprietorship
• LLC

This type of business is subject to many more laws and are more difficult to form.

• Proprietorship
• Partnership
• Corporation
• Franchise

The major policy and financial decision makers of a corporation are determined by the...

• CEO/GM/President
• Chairman of the Board
• Shareholders
• Board of Directors

This type of organization is a legal entity separate from its owners.

• Sole proprietorship
• Partnership
• Corporation
• Franchise