Business Organization

_______________ are firms legally owned by only one person. 

• corporations

• sole proprietorships

• partnerships

• monopolies

___________ are businesses owned by two or more people.

• sole proprietorship

• partnership

• corporation

• scarcity

____________ are firms legally owned by stockholders who have purchased “shares” of the company in the hope that the value of their shares will increase over time and pay dividends.

• Non-profit organizations
• Corporations

• Government agencies
• Partnerships

_____________ are money payments distributing some of a firm’s profit to shareholders on a quarterly basis.

• dividends
• bonuses
• salaries
• interests

_______________ also have the ability to raise money by issuing bonds to raise money for ventures. 

• Governments
• Individuals
• Corporations
• Non-profit organizations

____________________ means that if a business is unable to meet its financial obligations, the owner(s) of the business are personally responsible to pay those debts. This means the owner(s) could be required to liquidate personal assets such as their home to pay the debts of the company. 

• Business liability
• Corporate liability
• Unlimited liability

• Limited liability

_______________ is when responsibility for the debts of the business are restricted to the ownership stake (shares of stock) the business owner owns. The personal assets of the shareholder are not in jeopardy. 

• Business liability
• Corporate liability
• Unlimited liability

• Limited liability

_____________ means the business closing or reorganizing a business under the new owner(s) when the previous owner(s) leaves the business. 

• acquisition
• limited life

• merger
• succession

_______________ means the business passes to new owners through the sale of shares without ending the business.

• Unlimited life

• liquidation
• mergers and acquisitions
• bankruptcy

Which of the following business organizations is taxed twice?

• sole proprietorship

• partnership

• corporation