Types of Organizations

What is a sole proprietorship?

• A sole proprietorship is a type of business entity where the business is owned and operated by a corporation.

• A sole proprietorship is a type of business entity where the government owns and operates the business.

• A sole proprietorship is a type of business entity where multiple individuals own and operate the business.

• A sole proprietorship is a type of business entity where an individual owns and operates the business.

Answer explanation

A sole proprietorship is a business entity owned and operated by a single individual. This is in contrast to other options where the business could be owned by a corporation, the government, or multiple individuals. The correct answer highlights the unique characteristic of a sole proprietorship, which is individual ownership and operation.

What are the advantages of a partnership?

• Shared responsibilities, shared resources, shared risks, and tax benefits.

• Individual responsibility, reduced risk, increased competition

• Higher taxes, increased risk, limited resources

• Limited liability, increased control, reduced competition

What is a corporation?

• A corporation is a type of partnership.

• A corporation is a non-profit organization.

• A corporation is a government agency.

• A corporation is a legal entity that is separate and distinct from its owners.

What are the advantages of a corporation?

• Unlimited liability, inability to raise capital, limited existence

• Limited liability, inability to raise capital, limited existence

• Limited liability, ability to raise capital, limited existence

• Limited liability, ability to raise capital, perpetual existence

What is a cooperative?

• A cooperative is a type of business organization owned and operated by a group of individuals for their mutual benefit.

• A cooperative is a type of business organization owned and operated by the government.

• A cooperative is a type of business organization owned and operated by a corporation.

• A cooperative is a type of business organization owned and operated by a single individual.

What are the advantages of a cooperative?

• Higher costs, lack of innovation, limited growth opportunities

• Unequal distribution of profits, lack of accountability, decreased competitiveness

• Limited access to resources, lack of individual control, decreased efficiency

• Shared decision-making, equal distribution of profits, increased bargaining power, and a sense of community and belonging.

What is a non-profit organization?

• An organization that operates for purposes other than generating profit.

• An organization that operates for both profit and non-profit purposes.

• An organization that operates solely for generating profit.

• An organization that operates for personal gain.

What are the characteristics of a non-profit organization?

• A non-profit organization is an organization that operates solely for generating profit.

• A non-profit organization is an organization that focuses on maximizing shareholder value.

• A non-profit organization is an organization that prioritizes financial gain over social impact.

• A non-profit organization is an organization that operates for purposes other than generating profit.

What is a franchise?

• A franchise is a type of sandwich.

• A franchise is a form of government.

• A franchise is a type of clothing brand.

• A franchise is a legal and commercial relationship between the owner of a trademark, brand, or business model (franchisor) and an individual or group (franchisee) who is granted the right to operate a business using the franchisor's brand and system.

What are the advantages of a franchise?

• No need for initial investment, guaranteed success, minimal effort required

• Flexible working hours, unlimited earning potential, complete independence

• Brand recognition, established business model, training and support, access to a proven customer base

• No need for business experience, easy to manage, quick return on investment