Module 1 - Overview of Financial Management

Other term for sole proprietorship

• Single Proprietorship

• One-Owner Proprietorship

• No other term

• Individual Proprietorship

What is the simplest form of business organization?

• Partnership

• Corporation

• Sole Proprietorship

• Cooperative

Which legal form of business ensures the greatest protection of owners' personal assets?

• Partnership

• Corporation

• Sole Proprietorship

• Cooperative

They share ownership and profits as well as responsibilities and losses, depending on the agreement, i.e. of general partners, limited partners.

• Partnership

• Corporation

• Sole Proprietorship

• Cooperative

Typically owned by one person – the one who established the business.

• Partnership

• Corporation

• Sole Proprietorship

• Cooperative

Good for those people or entrepreneurs who are beginning their business.

• Partnership

• Corporation

• Sole Proprietorship

• Cooperative

A business entity that has no juridical personality

• Partnership

• Corporation

• Sole Proprietorship

• Cooperative

In a sole proprietorship, who is responsible for the liabilities and debts of the business?

• government

• owner

• consumers

• suppliers

One of the major disadvantages of a sole proprietorship

• High start-up costs

• Difficulty in making decisions

• Limited capital resources

• Shared liabilities

When a sole proprietor seeks additional capital and partners with another person, the business can transition into a ____________ ?

• Cooperative

• Corporation

• General Partnership

• Limited Liability Partnership