Topic 1: Forms of Business Ownership: Choosing the Right Fit

Robert owns three restaurants in Atlanta. He pays taxes for the income from the restaurants as his personal income. Robert's business is an example of a...

• Personal Partnership

• Sole Trader

• Joint Venture

• Corporation

• Limited Liability Firm

Which of the following business structures is the most complicated and expensive?

• Unlimited Partnership

• Corporation

• General Partnership

• Sole Trader

• Limited Partnership

A(n) ________ is an unincorporated company owned by two or more people.

• Limited liability corporation

• Partnership

• Corporation

• S Corporation

• Sole Trader

A major advantage of partnerships is that they ________

• do not require owners to take personal responsibility for their actions

• provide limited liability protection to partners

• present opportunities to share costs

• are less vulnerable to conflicts between investors

• allow investors to handle issues such as succession and termination better

A public corporation refers to a corporation ________.

• that is allowed to sell stock only to a limited number of investors

• whose stock is sold to general people

• that is owned solely by the federal government

• whose stock is not traded in stock exchanges or other markets

The board of directors are ________.

• the highest-ranked managers of a corporation

• elected by corporate officers

• representatives of the shareholders

• the top executives running a corporation

In a(n) ________, two companies join to form a single entity either by pooling their resources or by one company purchasing the assets of the other.

• limited partnership

• acquisition

• joint venture

• merger

In a general partnership, ________.

• all partners have joint authority to make decisions

• all partners have limited liability

• the number of partners is limited to five

Profits of sole proprietorships ________.

• are considered fixed assets

• flow directly to the owners

• are subject to double taxation

A potentially significant disadvantage of a partnership is that ________.

• it has more chances for disagreement and conflict

• it involves double taxation of the income generated

• ) the amount of money generated in a partnership is low