WorksheetsAdvantages & Disadvantages of Business Organizations
Total questions: 21
Worksheet time: 12mins
What is Sole Proprietorship
form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; - most common form of business organization in the U. S.
What is Partnership?
form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; - most common form of business organization in the U. S.
What is Corporations?
form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; - most common form of business organization in the U. S.
What is an advantage in Sole Proprietorship?
Can attract more financial capital
Easy to manage
Unlimited life
No additional business taxes on income
What is an advantage in Sole Proprietorship?
Easy to start
Can Issue stocks
Can attract more financial capital
Buy and sell property
What is an advantage in Sole Proprietorship?
Unlimited liability
Great management experience
Can attract more financial capital
Owner keeps all profits
What is a disadvantage in Sole Proprietorship?
Difficult to raise capital
Expensive to form
profit taxed twice
Conflict
(disadvantage) If the owner dies being in Sole Proprietorship, then
Every employee is released from that company
the company dies as well
everything in the company is sold off
All of the above
(disadvantage) What happens if an employee loses his finger in a sole proprietorship?
the employee gets terminated for not being able to work no more
unlimited liability kicks in
The owner gets kicked out of his/her company and the employee gets to be the owner
Owner's personal possession are at risk in the court.
(Advantage) What happens to company when partnership kicks in?
Owner still keeps all profit
larger size
they can finally issue stocks bonds
unlimited liability
(Advantage) Since the company of partnership is getting bigger,
They can attract more financial capitals
Can hire more professional managers to run the business
it's more expensive and time consuming
(Disadvantage) True of false, “joint and several liability” in partnership means that each partner is liable for all debts
True
False
(Advantage) How many times partnerships get taxed?
once
twice
none
like three times
(disadvantage) "limited partners" means
Only liable for the amount invested
The owner can only have one more partner
The owner still has possessions at risks
(Disadvantage) Does limited life affect partnership?
No
Yes
(advantage) In a corporation, what can they issue?
Stocks
Bonds
Both
(Advantage) Is limited liability good in a corporation?
Yes
No
(Advantage) What can a corporation when they are failing hard in a business? Hint: The Office
Broke
Bankruptcy
Collapsed Company
Failure in a Company
(Disadvantage) Is it expensive and to form a company?
YES
no.
(Disadvantage) is it a strength or a weakness for separation of ownership and management in a corporation?
A strength
A weakness
Both
None
(Disadvantage) How many times is a corporation taxed?
None
Once
Twice
three times
