Chapter 8: Types of Business Organizations

Front

This type of business is owned by one person.

Back

Sole Proprietorship

Front

Advantages of this business type are that the owner is their own boss and gets to keep all the profits. Options: Partnership, Sole Proprietorship, Corporation, Franchise

Back

Sole Proprietorship

Front

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. What type of business is this?

Back

Sole Proprietorship

Front

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

Back

The responsibility for the business is shared

Front

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

Back

Corporation

Front

Which is ONE disadvantage of Sole Proprietorship?

Back

Hard to raise money

Front

What is ONE advantage of a Corporation?

Back

Easy to raise money!

Front

Disadvantages include limited life and the potential for conflict between partners. What type of business structure does this describe?

Back

Partnership

Front

Characteristics include owned by two or more people and may be general or limited

Back

Partnership

Front

Advantages include limited liability for owners, unlimited life, and ease of transfer of ownership. What type of business entity is being described?

Back

Corporation