Understanding Business Organizations

What is the primary goal of a business organization?

• To provide employment

• To make a profit

• To support community services

• To create regulations

Which of the following is a characteristic of a sole proprietorship?

• Limited liability

• Owned by shareholders

• Single owner

• Double taxation

What is the main advantage of a corporation?

• Easy to form

• Limited liability

• Single taxation

• Unlimited liability

Which type of business organization is owned by two or more people who share profits and responsibilities?

• Corporation

• Sole proprietorship

• Partnership

• Non-profit organization

What is a key feature of a non-profit organization?

• Profit distribution to owners

• Focus on social goals

• Unlimited liability

• Owned by a single individual

Which of the following is a disadvantage of a sole proprietorship?

• Double taxation

• Unlimited liability

• Complex formation process

• Limited control

What is the term for the legal document that outlines the rules for running a corporation?

• Partnership agreement

• Articles of incorporation

• Business plan

• Employment contract

Which business structure is most likely to have shareholders?

• Sole proprietorship

• Partnership

• Corporation

• Non-profit organization

What is the primary purpose of a business plan?

• To hire employees

• To outline business goals and strategies

• To distribute profits

• To register a trademark

Which of the following is a benefit of forming a partnership?

• Limited liability

• Shared decision-making

• Double taxation

• Single ownership