Chapter 2 Assessment

Which of the following is not an advantage of a corporation?

• Limited liability

• Capable of raising funds

• Corporate bylaws

• Continued life

Which of the following is not an advantage of a sole proprietorship?

• Limited capacity

• Full authority of business

• Owner retains all benefits

• Inexpensive to form

Which of the following is not a disadvantage of a partnership?

• Unlimited liability

• Limited liability

• Limited life

• Possibility of disagreements

Corporate bylaws are written for:

• For-profit businesses

• Partnerships

• Proprietorships

• Corporations

Which of the following does not impact the way a business is organized?

• Size

• Location

• Goals

• Budget

Stock is defined as:

• A share representing ownership in a company.

• A type of government bond.

• A form of physical inventory in a warehouse.

• A loan given to a corporation.

A corporation is best defined as:

• A business owned by shareholders with limited liability

• A business owned and operated by one individual

• A business owned by two or more partners sharing liability

• A government agency operating for public service

A general partnership is defined as:

• A business owned and operated by two or more people who share liability and management.

• A business owned by a single individual.

• A corporation owned by shareholders.

• A business run by the government.

A dividend is:

• A payment made by a corporation to its shareholders, usually as a distribution of profits.

• A type of loan given to a company by a bank.

• The total value of a company's assets.

• A tax imposed on company profits.

A business model is defined as:

• A plan for how a company creates, delivers, and captures value.

• A list of products a company sells.

• A company's advertising strategy.

• A company's employee handbook.