Business Management Practice 2 Quiz

What is a sole proprietorship?

• A business owned by two or more individuals

• A business owned and operated by one person

• A legal entity separate from its owners

• A business with limited liability protection

Which of the following is an advantage of a partnership?

• Limited liability for the owners

• Unlimited liability for the owners

• Ease of formation

• Separation of ownership and management

A corporation is characterized by:

• Limited liability for the owners

• Unlimited liability for the owners

• Sole ownership

• Informal decision-making process

What is a franchise?

• A business owned by one person

• A legal entity separate from its owners

• An agreement to operate a business under a recognized brand

What does LLC stand for?

• Limited Liability Corporation

• Limited Liability Company

• Limited Liability Cooperative

• Limited Liability Conglomerate

What is a line organizational structure?

• A structure that combines functional departments with support staff

• A structure where authority flows vertically from top to bottom

• A structure where teams work independently on projects

• A structure where authority is shared equally among all employees

Which organizational structure involves direct supervision from a manager to subordinates?

• Line and Staff

• Matrix

• Team

• Line

In a matrix organizational structure:

• Employees work independently on projects

• Authority flows vertically from top to bottom

• Employees report to both functional managers and project managers

• There is a clear hierarchy of authority

What is a team organizational structure characterized by?

• Direct supervision from a manager to subordinates

• Centralized decision-making

• Collaboration among employees with shared responsibilities

• Clear division of labor

What is a centralized management structure?

• Decision-making authority is delegated to lower levels of the organization

• Decision-making authority is concentrated at the top of the organization

• Employees work independently on projects

• There is no clear hierarchy of authority