Chapter 3 Bus. Orgs (2026)

List the 3 Types of Business organizations:

• Sole Proprietorships, Partnership, Corporation

• Sole Proprietorships, Partnership, LLC

• Sole Proprietorships, Corporation, LLC

• Partnership, Corporation, LLC

A ______ is a business run by one person.

• sole proprietorship

• partnership

• corporation

• limited liability company

A sole proprietorship is the ______ business organization in size but the most numerous & profitable.

• largest
• medium-sized
• smallest
• corporate

What are advantages of a sole proprietorship?

• Easy to start up

• ease of management & owner gets all the profits

• closing the business is easy

• Complex regulations and high start-up costs

• no liability

What is one disadvantage of a sole proprietorship?

• Unlimited liability

• Complex tax structure

• Difficult to form

• Shared decision making

A business jointly owned by two or more persons is called a ______.

• partnership

• corporation

• sole proprietorship

• franchise

List the two types of partnerships:

• General & Limited Partnerships

• General & Specific Partnerships

• Limited & Unlimited Partnerships

• General & Unlimited Partnerships

General partnerships are a type of business in which all partners are involved in the management and finances.

• True

• False

In a Limited partnership, at least one partner is not involved in management.

• True

• False

advantage of a partnership is:

• Increased liability

• ease of start-up

• Limited growth potential

• Sole decision-making

• ease of management