Business Organizations of Economics - Topic 5

Front

Sara’s Hair Palace is a small, locally owned beauty salon in Sterling. This represents what type of business?

Back

sole proprietorship

Front

What economic term describes Susie starting her own lemonade store?

Back

Entrepreneur - person who takes a risk to start a new company

Front

Dan has $5,000. He wants to invest his money in the type of business that has the least amount of liability. In which type of business should he invest?

Back

corporation

Front

A business partnership has ___________ who share the risks and the profits.

Back

Two or more owners

Front

In which of the following would one person be responsible for all of the risks but also receive all of the profits? Options: Corporation, Propreitership, Partnership, Dual owner business

Back

Propreitership

Front

What do we call a person who is willing to take the risks of starting a business in order to make a profit?

Back

Entrepreneur

Front

Which of the following is an advantage of sole proprietorships: Limited liability, Unlimited financial power, Dual taxation, Quick decision making

Back

Quick decision making

Front

Which of the following is a disadvantage of sole proprietorships: Limited capital, Control, Privacy, Tax liability

Back

Limited capital

Front

Which of the following is an advantage of general partnerships: Limited capital, Unlimited liability, Easy to end, Combined capabilities

Back

Combined capabilities

Front

Which of the following is an advantage of the corporation as a form of business ownership: Less complex requirements, Separate owners and managers, Limited liability, High Taxes

Back

Limited liability