Business Organizations

Which of the following is a disadvantage of corporations:

• High taxes

• Unlimited life

• Unlimited liability

• financial power

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

The owners of a corporation are called

• Directors

• Partners

• Shareholders

• Founders

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

• Sole Proprietorship

• Partnership

• Corporation

What is a business owned and operated by two or more people?

• Sole Proprietorship

• Partnership

• Corporation

What is ONE advantage of a sole proprietorship?

• You make ALL the decisions

• Easy to raise money

• You have to share profits

Which is ONE disadvantage of Sole Proprietorship?

• Less direct control

• Disagreements

• Hard to raise money

Advantages include limited liability for owners, unlimited life, and ease of transfer of ownership. 

• Sole Propriotorship

• Partnership

• Corporation

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

• corporation

• partnership

• sole proprietorship

What is ONE advantage of a Corporation?

• Difficult to start

• Make all of the decisions

• Easy to raise money!