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Business Organization Review

Total questions: 22

Worksheet time: 11mins

Name
Class
Date
1.

Keeps all profits for self

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

2.

Double Taxation

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

3.

Complex and expensive to set up

a)

Partnership

b)

Corporation

c)

Sole Proprietorship

d)

Corporation and Partnership

4.

Unlimited Liability

a)

Partnership

b)

Corporation

c)

Sole Proprietorship

d)

Sole Proprietorship and Partnership

5.

Hard to raise funds to start and expand

a)

Sole Proprietorship and Corporation

b)

Sole Proprietorship

c)

Partnership and Corporation

d)

Corporation

6.

Limited Liability

a)

Corporation

b)

Partnership

c)

Sole Proprietorship

d)

All of the Above

7.

Can exist indefinitely

a)

Partnership

b)

Sole Proprietorship

c)

Corporation

d)

Partnership and Corporation

8.

Death of owner ends the business

a)

Partnership

b)

Sole Proprietorship

c)

Corporation

d)

Sole Proprietorship and Partnership

9.

Business income is considered personal income

a)

Partnership

b)

Corporation

c)

Sole Proprietorship

d)

Partnership and Sole Proprietorship

10.

Easiest type of business to start

a)

Corporation

b)

Sole Proprietorship

c)

Partnership

d)

Corporation and Partnership

11.

Requires a charter from the state government

a)

Corporation

b)

Sole Proprietorship

c)

Partnership

d)

None of the above

12.

Does not have to pay a separate tax on business profits

a)

Corporation

b)

Sole Proprietorship and Partnership

c)

Partnership

d)

Franchise

13.

Ownership and management are separate

a)

Sole Proprietorship

b)

Partnership

c)

Partnership and Corporation

d)

Corporation

14.

Has two or more owners but does not issue stock

a)

Corporation

b)

Partnership

c)

Sole Proprietorship

d)

Franchise

15.

What is the Purpose of the stock market?

a)

Raise Capital for Businesses

b)

Regulate the Exchange of Stocks

c)

Make Stockholders Money

16.

Why do people invest in stocks?

a)

So their money can grow in value over time

b)

To become rich

c)

To own the company

17.

Why would a company choose to become a public corporation?

a)

Raise Money

b)

Spread the risk of ownership among a large group of shareholders

c)

To have them listed on the stock exchange

18.

What government agency regulated stock trading activity?

a)

The Securities and Exchange Commission

b)

Prospectus

c)

Department of Commerce

19.

What is one advantage to owning a Franchise

a)

Buying Power

b)

Operating Standards

c)

Royalty Fees

d)

Limited Product Line

20.

What is one disadvantage of owning a Franchise?

a)

Brand Recognition

b)

Training Support

c)

Purchasing Restrictions

d)

National Advertising

21.

What is an advantage to having a LLC?

a)

It is not widely accepted

b)

It is difficult to transfer

c)

Its filing fee is usually higher than corporations

d)

It does not pay taxes

22.

What is one disadvantage to a LLC?

a)

They are personally not liable for the company debts

b)

It does not require much paper work

c)

It is difficult to transfer

d)

it does not pay taxes