Economics 3.1

What are the three main forms of business organization?

• Sole proprietorship, partnership, corporation
• Franchise, cooperative, LLC
• Sole proprietorship, franchise, LLC
• Corporation, LLC, cooperative

What does each form of business organization offer its owners?

• Significant advantages and disadvantages
• Unlimited liability
• Government regulation
• Fixed revenue

What can the type of business an entrepreneur chooses have?

• Real consequences
• No consequences
• Small impact
• Big rewards

What would have happened if Marc Weinstein and his co-founders had organized as a corporation?

• The corporation would have to please its stockholders
• They would have had unlimited liability
• They would have lost their personal wealth
• They would have been taxed less

How was Marc Weinstein's business organized?

• As a partnership
• As a corporation
• As a sole proprietorship
• As a franchise

What advantage does a partnership offer in terms of success criteria?

• Allows partners to set their own criteria for success
• Requires a rigid success formula
• Offers no room for personal criteria
• Involves government-set success metrics

What is the most common form of business organization in the United States?

• Sole proprietorship
• Corporation
• Partnership
• LLC

How many people own and run a sole proprietorship?

• One person
• Two people
• A group of people
• A corporation

What size of business are proprietorships?

• The smallest form of business
• The largest form of business
• Medium-sized businesses
• Large corporations

What fraction of total sales do proprietorships comprise?

• The smallest fraction of total sales
• Half of total sales
• The majority of sales
• A quarter of total sales