Economics Unit 3 Lesson 2 Vocab Activity

What is the primary document required to legally form a corporation?

• Articles of Partnership

• Articles of Incorporation

• Corporate Bylaws

• Business License

Which type of business structure involves two or more people sharing ownership and responsibilities?

• Sole Proprietorship

• Corporation

• Partnership

• Franchise

What is the role of a Chief Executive Officer (CEO) in a corporation?

• To manage day-to-day operations

• To oversee the board of directors

• To handle legal matters

• To issue stock certificates

Which term refers to the legal responsibility of a business owner for all debts and actions of the business?

• Limited Liability

• Unlimited Liability

• Corporate Responsibility

• Liability

What is a business franchise?

• A type of corporation

• A business that operates under a parent company's brand

• A nonprofit organization

• A professional organization

Which type of corporation is owned by a small group of people and does not offer its stock to the public?

• Publicly Held Corporation

• Multinational Corporation

• Closely Held Corporation

• Nonprofit Organization

What is the purpose of a business license?

• To protect a business's trademark

• To legally operate a business in a specific location

• To issue stock certificates

• To form a partnership

Which of the following is a benefit of a limited liability company (LLC)?

• Double taxation

• Unlimited liability

• Limited liability

• No need for a business license

What is the main difference between a general partner and a limited partner in a partnership?

• General partners have limited liability

• Limited partners manage the business

• General partners have unlimited liability

• Limited partners have unlimited liability

What is the primary function of a board of directors in a corporation?

• To manage daily operations

• To oversee the corporation's activities and make major decisions

• To issue business licenses

• To handle labor union negotiations