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Forms of Business Organization

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Tony and Alex own a saloon together. They share equal responsibility and each receive 50% of the profits. What form of business organization is this?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Cooperative

2.

What is the main purpose or objective of business?

a)

earn profit

b)

create job

c)

help other people

d)

none of the choices

3.

How is a general partnership organized?

a)

Every partner shares equally in both responsibility and liability

b)

The doctors, lawyers, or accountants who form a general partnership hire others to run the partnership

c)

No partner is responsible for the debts of the partnership beyond his or her investment

d)

Only one partner is responsible for the debts of the partnership

4.

Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Cooperative

5.

A partnership in which all partners assume full personal liability for debts of the firm

a)

limited partnership

b)

trading partnership

c)

non-trading partnership

d)

general partnership

6.

Partners who are only responsible up to the extent of their investment

a)

limited partnership

b)

trading partnership

c)

non-trading partnership

d)

general partnership

7.

The owners of a corporation are called

a)

Directors

b)

Partners

c)

Shareholders

d)

Founders

8.

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)

Cooperative

9.

Why are small businesses important to nation building?

a)

Small businesses owned by sole proprietors are significant contributors to economic development, and job creation

b)

Small businesses and partnerships are the main source of taxes in the country

c)

They are the most active forms of business organizations who can only contribute to the overall growth of the community

d)

They are not very important to nation building because they are only small in size

10.

Which of the following is NOT a socio-economic contribution of the different forms of businesses?

a)

Creation of jobs

b)

Provide opportunities for women and minority groups to improve their lives

c)

Generate taxes for infrastructure building

d)

Make people rich by selling highly priced product