Forms of Business Ownership

When ownership of a small corporation is restricted

to a small group of investors, it is:

• a) publicly held.

• b) government owned.

• c) bureaucratic.

• d) privately held.

This type of business is subject to many more laws and are more difficult to form.

• Proprietorship
• Partnership
• Corporation
• Franchise

The major policy and financial decision makers of a corporation are determined by the...

• CEO/GM/President
• Chairman of the Board
• Shareholders
• Board of Directors

Which of the following is an advantage of operating a large established business as a corporation?

• Shares can be sold to the public to raise additional finance

• Financial accounts are published

• Shares can only be sold to invited investors to raise finance

• Owners have unlimited liability

A business with one owner is known as a:

• Company

• Sole Proprietorship

• Partnership

The members of the board of directors of a corporation

are chosen by the corporation’s:

• b) creditors.

• c) general partners.

• d) stockholders.

• e) charter members.

Nike, Google and Apple are examples of.....

• Sole Proprietorships
• Partnerships
• Corporations
• Franchises

A private held coporation may change into a public corporation because it wants:

• Limited liability

• To raise additional finance

• Unlimited liability

• To avoid takeover

A business run by 2-20 people and has unlimited liability is known as a:

• Company

• Sole Proprietorship

• Partnership

Which legal structure would an individual wishing to start-up a small business choose because it is quick, easy and inexpensive to set up?

• Sole proprietorship

• Partnership

• Privately Held Corporation

• Corporation