Types of Business Organization

Which of the following is NOT one of the main types of business organization?

• Sole proprietorship

• Partnership

• Corporation

• Non-profit organization

What is a sole proprietorship owned by?

• A group of people

• Two partners

• One person

• A board of directors

Which of the following is an advantage of a sole proprietorship?

• Difficult to obtain capital needed to start

• Owner must pay for everything needed for the business

• Unlimited liability

• Owner keeps all profits

What is a disadvantage of a sole proprietorship in terms of liability?

• Limited liability

• Owner is his/her own boss

• Unlimited liability

• Easy to start

Which of the following is NOT an example of a sole proprietorship?

• Floral shops

• Bookstores

• Farms

• Multinational corporations

Who is a partnership owned by?

• A single individual

• A government entity

• Two or more people

• A non-profit organization

Which of the following is an example of a partnership?

• Technology startup

• Law firms

• Retail chain

• Public school

What is an advantage of a partnership compared to a sole proprietorship?

• Partners do not share risks

• It is harder to obtain capital

• Partners share skills and talents

• Unlimited liability is not shared

What must partners in a partnership do with profits?

• Keep all profits individually

• Invest all profits back into the business

• Share profits equally regardless of contribution

• Share profits

What happens to a partnership if one partner quits?

• The partnership continues as usual

• The partnership must be reorganized

• The partnership automatically dissolves

• The partnership becomes a sole proprietorship