1.4 Business Studies

This type of business is owned by one person.

• Partnership
• Sole Proprietorship
• Corporation
• Franchise

Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

• Partnership
• Sole Proprietorship
• Corporation
• Franchise

Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.

• Sole Proprietorship
• Partnership
• Corporation
• Franchise

What is a major advantage of a business that is a partnership rather than a sole proprietorship?

• The responsibility for the business is shared
• The business is easy to set up
• The partners are not responsible for business debts
• The business is easy to sell

Joe is starting a small home-based consulting business. He possesses computer knowledge but lacks marketing skills. The form of business ownership that Joe might consider establishing is a(n)

• corporation
• sole proprietorship
• monopoly
• general partnership.

The owners of a corporation are called

• Directors
• Partners
• Shareholders
• Founders

Most expensive to start

• Sole Proprietorship
• Partnership
• Corporation

What is a liability?

• a company's legal obligation to report to the SEC

• a company's legal ability to make decisions on the factors of production

• a company's legal financial debts or other obligations resulting from its daily business operations

• a company's legal financial decisions based on the overall balance sheet

What is a business owned by stockholders/investors but operated by others?

• Sole Proprietorship

• Partnership

• Corporation

• Limited Liability Partnership