Business Organization Quiz

Which statement is true about partnerships?

• In a limited liability partnership, only one partner manages the business.

• In a limited partnership, partners cannot lose the money they have invested.

• In a limited partnership, every partner is responsible for the company's actions.

• In a limited liability partnership, all partners are limited from liability in some situations.

Mr. Martin owns a neighborhood shop that used to be called Martin’s Flowers. Now his shop is called Flowers Galore, just like the shops you have seen in other towns and in the mall.

What change did Mr. Martin most likely make?

• from limited to general partnership

• from sole proprietorship to franchise

• from corporation to general partnership

• from sole proprietorship to corporation

Which of the following phrases best defines the term limited partnership?

• an organization that limits liability to the corporation rather than the individual owners

• a partnership in which at least one partner has less responsibility in the business operations and less liability for business losses

• a business that is limited to three or fewer investors

• a business model that combines aspects of corporations and partnerships

Unlimited liability is one of the main advantages of sole proprietorship

Limited life applies to

• corporations

• multinationals

• conglomerates

• sole proprietorship

A separate legal entity, or being, owned by individual stockholders, each of whom faces limited liability for the firm's debts is known as a

• limited liability company

• limited partnership

• corporation

• franchise

Companies that have a presence in other countries, such as McDonalds or KFC are known as

• franchise

• corporation

• multinational

• conglomerate

A semi-independent business that pays fees to a parent company to use their name, brand and products is a business

• corporation

• franchise

• conglomerate

• multinational

Which of the following are NOT true about Corporations?

• they have unlimited life (if the CEO dies, the business continues)

• They have unlimited liability for the shareholders

• They have the ability to hire more professional managers and employees because they have more revenue

• They have an easy time raising financial capital (money)

A large corporation that owns more than 3 different businesses would be considered a

• multinational

• franchise

• conglomerate

• limited liability company