Free Printable Ch. 8 Business Organizations

1.

In what type of business organization is each owner personally liable for all business debts, even if the debts were created by other owners?

a)

Corporation

b)

Partnership

c)

Proprietorship

d)

Corporation

2.

Which of the following is the definition for sole proprietorship

a)

A business investment that involves renting or leasing another successful business model in which you have to pay royalties to the parent company.

b)

A 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 United States.

c)

An 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.

d)

A 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.

3.

Which of the following is the definition for Corporation?

a)

A business investment that involves renting or leasing another successful business model in return for paying royalties to the parent company.

b)

An 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 United States.

c)

An 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

d)

A 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.

4.

Which of the following is the definition for Partnership?

a)

A business investment that involves renting or leasing another successful business model.

b)

An 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 United States.

c)

An 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.

d)

A 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.

5.

Which of the following is an advantage of a partnership?

a)

They are difficult to start.

b)

Management can be challenging between two or more people.

c)

Partnerships can usually attract financial capital more easily than proprietorships.

d)

Splitting of profits.

6.

Payments of a company's profit to their shareholders is called:

a)

Shares

b)

Dividends

c)

Bonds

d)

Capital

7.

Which is NOT a basic type of business ownership?

a)

Proprietorship

b)

Partnership

c)

Corporation

d)

Retail

8.

Nike, McDonald's, and Google are examples of a:

a)

Partnership

b)

Franchise

c)

Privately-Held Corporation

d)

Publicly-Held Corporation

9.

Which of the following is a disadvantage of a corporation?

a)

It is easy to raise financial capital using stocks, bonds, or loans.

b)

The double taxation of corporate profits.

c)

It is easy to get a charter to start a corporation.

d)

Owners and shareholders have total control over what happens with the business.

10.

Which of the following is the most common form of business organization?

a)

Corporations

b)

Sole Proprietorships

c)

Franchises

d)

Partnerships

11.

Inn-In-Out, Levi-Strauss, & Uber are examples of a:

a)

Vertical Merger

b)

Privately-Held Corporation

c)

Publicly-Held Corporation

d)

Partnership

12.

This type of cooperative is when a service business owned and operated by consumers.

a)

Consumer Cooperative

b)

Service Cooperative

c)

Producer Cooperative

d)

Business Franchise

13.

David Lopez decided to open his own software business. He borrowed money from a bank to buy computers and office equipment, and he hired one assistant. What is one DISADVANTAGE of Ramon's type of business organization?

a)

Limited Liability

b)

Ease of Start-up

c)

Shares Profits

d)

Unlimited Liability

14.

The acquisition of a former competitor would be known as:

a)

Vertical Merger

b)

Horizontal Merger

c)

Market Extension Merger

d)

Conglomerate Merger

15.

This is when a merger of two or more corporations occur that are unrelated in the products they produce:

a)

Conglomerate Merger

b)

Horizontal Merger

c)

Acquisition Merger

d)

Vertical Merger

16.

This type of merger occurs when two or more corporations are involved in different stages of producing the same product.

a)

Conglomerate Merger

b)

Horizontal Merger

c)

Acquisition Merger

d)

Vertical Merger

17.

Target + Walmart

a)

Vertical

b)

Horizontal

c)

Conglomerate

18.

US Steel + Ford Motor Company

a)

Vertical

b)

Horizontal

c)

Conglomerate

d)

Multinational

19.

Adidas + Nike

a)

Vertical

b)

Horizontal

c)

Comglomerate

d)

Multinational

20.

Apple + Facebook + Google

a)

Conglomerate

b)

Horizontal

c)

Vertical

21.

Coca-Cola + Starbucks

a)

Vertical

b)

Horizontal

c)

Conglomerate

22.

Pepsi + Gatorade + KFC + Pizza Hut + Taco Bell

a)

Horizontal

b)

Conglomerate

c)

Vertical

23.

HBO + Game of Thrones

a)

Horizontal

b)

Conglomerate

c)

Vertical

d)

An extraordinary piece of cinematographic television

24.

This is a corporation that operates in more than one country.

a)

Conglomerate

b)

Globalization

c)

Multi-national Corporation

d)

Interstate Commerce

25.

This is a certificate from a corporation stating that they borrowed money from an individual and the terms of repayment.

a)

Dividends

b)

Bonds

c)

Shares

d)

Certificates

26.

All of the following would be a DISADVANTAGE of having a business franchise EXCEPT:

a)

Having to pay royalties.

b)

Strict operating standards.

c)

Limited product line.

d)

Standardized quality.

27.

An example of a consumer cooperative in which the retail outlet is owned and operated by consumers would be:

a)

Costco

b)

Walmart

c)

Amazon

d)

Ebay

28.

This type of cooperative is when an agricultural cooperative that helps members sell their products:

a)

Consumer Cooperative

b)

Service Cooperative

c)

Producer Cooperative

d)

Business Franchise

29.

This type of business functions like businesses but do not operate in order to make a profit.

a)

Business Franchise

b)

Service Cooperative

c)

Nonprofit Organization

d)

Limited Partnership

30.

Which of the following would be considered a Nonprofit Organization:

a)

Nike

b)

Tom's Shoes

c)

Chiquita Banana

d)

Salvation Army

Ch. 8 Business Organizations

Total questions: 30

Worksheet time: 18mins

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