Free Printable Business Organization

1.

A ________ must name a board of directors that will make the major policy and financial decisions for the business.

a)

limited liability company

b)

proprietorship

c)

corporation

d)

limited liability partnership

2.

The people who make the major policy and financial decisions in a corporation are the

a)

investors

b)

board of directors

c)

managers

d)

owners

3.

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

4.

The easiest form of business to start and end is a(n)

a)

limited liability partnership

b)

corporation

c)

franchise

d)

proprietorship

5.

Groups of people form consumer cooperatives to

a)

purchase goods and services more cheaply than they could as individuals

b)

reduce the amount of property taxes that each member must pay

c)

generate a profit for each member of the group

d)

increase their political power in their community

6.

Physicians, web designers, and furniture movers are

a)

intermediaries

b)

nonprofit corporations

c)

manufacturers

d)

service businesses

7.

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)

Sole Proprietorship

b)

Partnership

c)

Corporation

8.

A form of business organization that is authorized to act as a legal entity regardless of the number of owners.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Limited Liability Company

9.

What is a disadvantage of a partnership?

a)

ease of formation

b)

owners share responsibility

c)

limited liability

d)

possibility of personality conflict

10.

What is the advantage of corporations?

a)

has one owner

b)

limited liability

c)

minimal government regulation

d)

short life span

11.

In which type of organization does one person take all the risks?

a)

Corporation

b)

Limited Liability Company

c)

Sole Proprietorship

d)

Partnership

12.

Easy to start, Owner is his/her own boss, Owner keeps all the profits - These are advantages of what type of business

a)

Partnership

b)

Corporation

c)

Cooperative

d)

Sole Proprietorship

13.

A type of business that consists of two or more people?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

14.

What type of business structure is owned by many people?

a)

Corporation

b)

Partnership

c)

Sole Proprietorship

d)

LLC

15.

Which of the following is the definition for sole proprietorship

a)

business investment that involves renting or leasing another successful business model

b)

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)

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

16.

Which of the following is the definition for Franchise

a)

business investment that involves renting or leasing another successful business model

b)

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)

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

17.

Which of the following is the definition for Corporation?

a)

business investment that involves renting or leasing another successful business model

b)

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)

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

18.

Which of the following is the definition for Partnership?

a)

business investment that involves renting or leasing another successful business model

b)

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)

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

19.

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. Profits are taxed the first time when the corporation pays income taxes. The profits are taxed a second time when shareholders pay taxes on their dividends.

c)

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

20.

Which of the following is an advantage of a Franchise?

a)

a nationwide network that had a respected product, a deep product line, excellent quality standards, nationwide advertising, and professional advice whenever needed.

b)

the ease of raising financial capital through stocks, bonds, and loans.

c)

the ease of management between two or more partners.

Business Organization

Total questions: 20

Worksheet time: 2hrs 46mins

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