Types of Business Organizations

Which of the following is a type of business organization?

• Sole Proprietorship

• Partnership

• Corporation

• All of the above.

A bakery is an example of a _________.

• Service Business

• Manufacturing Business

• Retail Business

• Non-profit Organization

Which business organization is described as having two or more owners and tends to be small?

• Sole Proprietorship

• Partnership

• Corporation

• None of the above

In a sole proprietorship, who receives all the benefits, profits, and income?

• The government

• The sole proprietor

• The employees

• The shareholders

What type of liability does a sole proprietor have?

• Limited liability

• No liability

• Unlimited liability

• Shared liability

In a sole proprietorship, income and profits are taxed at ______.

• A) corporate rates

• B) personal income rates

• C) international rates

• D) reduced rates

What is a challenge in obtaining financing for a sole proprietorship?

• Easy access to loans

• Difficult to get start-up or expansion financing

• Government grants

• High investor interest

What is taxed at personal income rates in a partnership?

• Liabilities

• Income/profit

• Expertise

• Opinions

Partnerships may have differences of ______ or disagreements.

• liabilities

• opinions

• taxes

• expertise

Which of the following is true about the liability of owners/shareholders in a corporation?

• Unlimited liability

• No liability

• Limited liability

• Joint liability