Agribusiness Business Forms Quiz 5

Which of the following is the oldest and simplest form of business organization in agribusiness?

• Corporation

• Cooperative

• Sole Proprietorship

• Limited Liability Company

In a partnership, which type of partner contributes capital but does not take an active role in management?

• General Partner

• Limited Partner

• Senior Partner

• Nominal Partner

A corporation is often called an “artificial person” because:

• It is run only by the government

• It is a legal entity separate from its owners

• It cannot own property

• It is always nonprofit

Which of the following is a key advantage of a cooperative?

• Controlled by one person

• Focused only on profit maximization

• Improves members’ market position

• Exempted from all liabilities

What is the main feature of a Limited Liability Company (LLC)?

• Members have unlimited liability

• Ownership cannot be transferred

• Combines partnership flexibility with limited liability

• Must issue stock certificates

Which factor should be considered when choosing a business form in agribusiness?

• Amount of capital available

• Tax implications

• Degree of management control desired

• All of the above

A silent partner is best described as someone who:

• Invests but is not active in management

• Is unknown to the public but manages the business

• Has seniority in the partnership

• Contributes no money or resources

Which document specifies the rules of operation of a corporation?

• Articles of Incorporation

• Bylaws

• Stock Certificates

• Blue-sky Laws

One of the benefits of doing business internationally is:

• Increased exchange rate risks

• Diversification across markets

• Higher domestic production costs

• Limited access to credit

Which of the following is a challenge in international agribusiness?

• Scale of economies

• Cultural differences

• Access to raw materials

• Export opportunities