Business Organization Quiz 4

What is a corporation?

• A company that is registered by a state and operates apart from its owners.

• A company that is owned and operated by its members.

• A company that focuses on providing a service, but not to make a profit.

• A contractual agreement to use the name and sell the products or services of a company in a designated geographical area.

How is a corporation formed?

• Owners must get a corporation charter from the state and have a board of directors.

• Two or more people agree to jointly own a business.

• One person owns and operates the business.

• A group of people come together to provide a service.

What is an advantage of a corporation?

• Owners have limited liability.

• Easy to start.

• Shared responsibilities.

• Complete control over the business.

What is a disadvantage of a corporation?

• Double taxation.

• Unlimited liability.

• Disagreements may occur between business partners.

• Lack of continuity.

What are the different types of business organizations?

• Sole proprietorship, partnership, corporation.

• Producer, processor, manufacturer, intermediary, service business.

• Production, procurement, marketing, management, finance.

• Cooperative, nonprofit organization, franchise.

What are the six types of businesses?

• Sole proprietorship, partnership, corporation, cooperative, nonprofit organization, franchise.

• Producer, processor, manufacturer, intermediary, service business, nonprofit organization.

• Production, procurement, marketing, management, finance, accounting.

• Cooperative, nonprofit organization, franchise, production, procurement, marketing.

What are the five functions of business?

• Sole proprietorship, partnership, corporation, cooperative, nonprofit organization.

• Producer, processor, manufacturer, intermediary, service business.

• Production, procurement, marketing, management, finance.

• Cooperative, nonprofit organization, franchise, production, procurement.

What is a producer?

• A business that extracts natural resources.

• A business that changes natural resources into a more finished form.

• A business that makes finished products out of processed goods.

• A business that moves goods from one business to another.

What is a processor?

• A business that extracts natural resources.

• A business that changes natural resources into a more finished form.

• A business that makes finished products out of processed goods.

• A business that moves goods from one business to another.

What is a manufacturer?

• A business that extracts natural resources.

• A business that changes natural resources into a more finished form.

• A business that makes finished products out of processed goods.

• A business that moves goods from one business to another.