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FORMS OF BUSINESS ORGANIZATION

Total questions: 20

Worksheet time: 11mins

Name
Class
Date
1.

A business with one owner is known as a:

a)

Company

b)

Sole trader

c)

Partnership

2.

The two forms of business ownership with unlimited liability are:

a)

Sole trader

b)

Public company

c)

Partnership

d)

Private company

3.

Advantages of a sole trader are:

a)

Limited liability

b)

The owner makes all the decisions

c)

The owner takes all the profit

d)

Can raise substantial capital

4.

Advantages of a partnership are:

a)

The partners split the profit

b)

Unlimited liability

c)

Raise more capital than a sole trader

d)

Share the workload

5.

Which of the following best describes the term limited liability? If the business fails:

a)

Personal possessions of the owner can be taken to pay any debts

b)

The owner is personally liable for all the debts of the business

c)

There is no limit on the amount the owner has to pay to settle debts

d)

The owner only loses the amount invested in the business

6.

It is a form of business ownership, where there is one owner who's responsible for the business.

a)

SOLE PROPRIETORSHIP

b)

PROPRIETORSHIP

c)

SOLE PREPRIOTERSHIP

d)

SOAL PROPREITORSHIP

7.
The type of business ownership in which all business decisions are the sole responsibility of the owner.
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
8.
These business owners may have trouble raising capital.
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
9.
Advantages of this business type are that the owner is their own boss and gets to keep all the profits.
a)
Partnership
b)
Sole Proprietorship
c)
Corporation
d)
Franchise
10.
Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
11.
What is a major advantage of a business that is a partnership rather than a sole proprietorship?
a)
The responsibility for the business is shared
b)
The business is easy to set up
c)
The partners are not responsible for business debts
d)
The business is easy to sell
12.
What is a business owned and operated by two or more people?
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
13.
What is ONE advantage of a sole proprietorship?
a)
You make ALL the decisions
b)
Easy to raise money
c)
You have to share profits
14.
Which is ONE disadvantage of Sole Proprietorship?
a)
Less direct control
b)
Disagreements
c)
Hard to raise money
15.
Disadvantages include limited life and
the potential for conflict between partners
a)
Sole Propriotorship
b)
Partnership
c)
Corporation
16.
Sara’s Hair Palace is a small, locally owned beauty salon in Sterling. This represents what type of business?
a)
corporation
b)
partnership
c)
sole proprietorship
17.

The main disadvantage of a __________ is that each person is fully responsible for the acts of all other persons.

a)

Proprietorship

b)

Partnership

c)

Corporation

d)

Franchise

18.

What term is defined as an enterprise that produces goods or services, usually to make a profit?

a)

business organization

b)

unlimited liability

c)

stock

d)

vertical merger

19.
What does LLP stand for?
a)
Limited Liability Partnership
b)
Lying Losers Pos
c)
Losing Limited Pace 
d)
Limited Liability Property
20.
What kind of business is BEST described by these statements?
I am the only owner of my business. 
I take all the risks of doing business. 
I keep all the profits. 
a)
proprietorship
b)
corporation
c)
partnership
d)
cooperative