Procter & Gamble Company Quiz

What caused the new white soap to float and overflow from the vat?

• A. A chemical reaction

• B. A worker forgot to turn off the mixer

• C. A steam-powered mixer malfunctioned

• D. A foamy mixture was intentionally created

What was the original name of the soap before it was named Ivory?

• A. P&G White Soap

• B. Pure & Float Soap

• C. 99.44/100% Pure Soap

• D. White Foam Soap

What event led to the formation of Procter & Gamble Company?

• A. A successful candle-making business

• B. A partnership between two soap makers

• C. A church service

• D. A chemical analysis

What type of business organization did William Procter use when he began to produce and sell candles in his small shop in Cincinnati?

• D. Limited liability company

• A. Corporation

• B. Partnership

• C. Sole proprietorship

What advantage did a partnership offer James Gamble and William Procter?

• C. Specialized management

• D. Shared profits and losses

• A. Limited liability

• B. Ease of transferring ownership

Did limited liability apply to William Procter's candle-making business or to the partnership formed by William and James Gamble in 1837?

• A. Yes, to both

• D. No, to the partnership only

• B. No, to both

• C. Yes, to William Procter's business only

What did Cooper Procter recommend in 1887 regarding the partnership?

• A. To dissolve it and form a corporation

• B. To expand it with new partners

• D. To convert it into a limited liability company

• C. To keep it as it is

What is a corporation?

• A. A business owned and run by one person

• B. A legal entity with its own rights and responsibilities

• C. A business with unlimited liability for its owners

• D. A business with no separate legal status

Compared with a proprietorship or a partnership, a corporation is usually better at raising funds for growth. Describe at least two features of a corporation that make it attractive for potential investors.

• B. Long life and ease of transferring ownership

• A. Limited liability and specialized management

• C. Limited liability and long life

• D. Specialized management and ease of transferring ownership

Why do you think the businesses you named in the previous question are all corporations, rather than proprietorships or partnerships?

• A. They have specialized management

• B. They have long life

• C. They are better at raising funds

• D. They have limited liability