Business orginization

2. Mario and his brother Luigi started a plumbing company together. They split the profits and the expenses.

• Sole Proprietorship

• Partnership

• Corporation

3. Mary opened a dance studio. She receives all the profits from her students’ lessons.

• Sole Proprietorship

• Partnership

• Corporation

Mr. Lewis pays taxes on dividends for stocks he owns in a manufacturing company. The company also pays taxes on its income before distributing it to stockholders.

• Sole Proprietorship

• Partnership

• Corporation

Dan, Tony, and Mac own a pizza parlor. They rotate hours and days off.

• Sole Proprietorship

• Partnership

• Corporation

Mr. Wells owns a card shop. Because baseball cards have declined in popularity his business is struggling. He decides he has to sell his house to pay off his business debts.

• Sole Proprietorship

• Partnership

• Corporation

Unger and Unger is a law firm consisting of two brothers who started their own business. They both are responsible for all profits and risks that their firm will have.

• Sole Proprietorship

• Partnership

• Corporation

9. What type of business is described in the diagram below?

• Sole Proprietorships

• Partnerships

• Corporation

10. What characteristic of a corporation is missing from the diagram on the below?

• Owner shares the profits with family members only

• Stockholders share the profits

• Main owner receives the majority of profits

• Board of Supervisors has the final say on new products

Which of the following is NOT a business organization?

• Sole Proprietorship
• Corporation
• Perfect Competition
• Partnership

What is a disadvantage of partnerships?

• ease of formation
• owners share responsibilities
• limited liability
• possibility of personality conflict