Types of Business Organizations Quiz

What term is defined as an enterprise that produces goods or services, usually to make a profit?

• business organization

• stock

• unlimited liability

• vertical merger

What is a business owned and managed by a single person called?

• conglomerate

• general partnership

• limited partnership

• sole proprietorship

What is the name for an individual who owns a share of a corporation and is entitled to part of its profits?

• director

• officer

• president

• stockholder

What is one of the major disadvantages of corporations?

• limited funds

• limited life

• loss of control

• unlimited liability

What is a cooperative?

• an institution that acts like a business organization but which does not make a profit

• a business that licenses the right to sell its products in a particular area

• a business operated for the shared benefit of its owners, who are also its customers

• a semi-independent business that buys the right to run a franchise

What percentage of U.S. firms had 20 to 499 employees in 2002?

• 1.4

• 8.9

• 10.3

• 10.6

What are the difficulties of starting a sole proprietorship?

• High legal fees and complex regulations.

• Limited financial resources and competition.

• Easy access to capital and low competition.

• Shared decision-making and high taxes.

Which of the following is a type of business organization?

• Monopoly

• Corporation

• Oligopoly

• Cartel

Which of the following is a marketing challenge for sole proprietors?

• High brand recognition

• Limited advertising budget

• Extensive marketing team

• Global market reach

What is a common feature of business acquisitions?

• Decrease in market share

• Increase in competition

• Expansion of business operations

• Reduction in product lines