Business Organization & Management Quiz

This type of business is owned by one person.

• Partnership

• Sole Proprietorship

• Corporation

• Franchise

A partnership in which all partners assume full personal liability for debts of the firm

• limited partnership

• trading partnership

• non-trading partnership

• general partnership

Which of the following is a disadvantage of corporations:

• High taxes

• Unlimited life

• Unlimited liability

• financial power

The owners of a corporation are called

• Directors

• Partners

• Shareholders

• Founders

What are the three types of business organizations

• partnership, sole proprietorship, corporation

• command, traditional, & market

• partnership, corporation, liability

• proprietorship, publically-owned, privately-owned

What are the costs of having a sole proprietorship?

• one person can easily get financing

• responsible for all decisions and all debts

• limited liability

• receives all benefits, profits and income

What is financing?

• Ability to borrow money to start or expand a business

• ability to spend money to start and expand a business

• ability to develop a business plan

• ability to make decisions on what capital is needed for the business

A business partnership has ___________ who share the risks and the profits.

• One owner

• No more than three owners

• Two or more owners

• Five or more owners

Why would a company need to issue stock?

• To increase its' customer base.

• To raise money.

• To stop the government from regulating it.

• To show customers that it's successful.

What is the most important trait an entrepreneur can have?

• There isn't any one trait that makes you a great entrepreneur

• Tenacity, or the ability to never give up

• Creativity, and being able to think of unique ideas

• Vision, or being able to see what the future needs