4. Business Entities and Cooperatives Quiz

What is one of the chief advantages of forming a corporation?

• Unlimited liability

• Unlimited profit sharing

• Automatic taxability

• Limited liability

• No need for a board of directors

Who owns a corporation?

• Its stockholders (or shareholders)

• The CEO

• The government

• Its employees

What does double taxation mean for corporations?

• Taxing profits twice

• A tax for international corporations

• Taxing profits and salaries

• Taxing profits, then dividends

What business model prioritizes shared ownership and democratic decision-making?

• A C Corporation

• B Cooperative (coop)

• C LLC

• D S Corporation

In which business entity do shareholders have limited liability for the company's debts?

• A C Corporation

• B Sole Proprietorship

• C S Corporation

• D General Partnership

Which form of business organization involves equitable growth across sectors?

• A Cooperatives (coops)

• B S Corporation

• C C Corporation

• D Joint Ventures

What role do cooperatives play in the global business landscape?

• A Enhancing corporate restructuring

• B Encouraging hierarchical decision-making

• C Promoting individual ownership

• D Advocating for unlimited liability

Which specialized business entity offers tax benefits to its members?

• A General Partnership

• B LLC

• C Cooperative Coop

• D S Corporation

What is the significance of partnerships and mergers for cooperatives?

• A Restricting global investments

• B Undermining cooperative objectives

• C Promoting central expansion

• D Encouraging individual ownership

What key aspect of cooperatives underscores their importance in the business landscape?

• A Promoting hierarchical structures

• B Fostering inclusivity and democratic decision-making

• C Encouraging exclusive ownership

• D Discouraging collaborative models