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Forms of Business Organization

Total questions: 15

Worksheet time: 3mins

Name
Class
Date
1.

It is an artificial being created by the operation of law, having right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence is called_________.

a)

Cooperative

b)

Corporation

c)

Partnership

d)

Sole Proprietorship

2.

A document which includes the name, objectives, powers, and registered address of a corporation is called ______.

a)

Constitution of Corporation

b)

By-laws of corporation

c)

Articles of Incorporation

d)

Articles of Partnership

3.

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

4.

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

5.

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

6.

The owners of a corporation are called

a)

Directors

b)

Partners

c)

Shareholders

d)

Founders

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.
Income is taxed twice for this form of business.
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
9.
This type of business organization makes it easier to secure financing because more than one person may apply for credit.
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
10.
Owners of this type of organization may receive dividends.
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
11.
These business owners may have trouble raising capital.
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
12.
This type of business ownership is often entered into by people with complementary skills
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
13.
The Board of Directors control daily business operations for this type of business.
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
14.

Owners of this type of organization enjoy limited liability.

a)

Sole proprietorship

b)

Partnership

c)

Corporation

d)

Franchise

15.
This type of partnership is less risky because this partner is only responsible for the contribution he/she has made to the partnership
a)
Sole proprietorship
b)
General Partnership
c)
Corporation
d)
Limited partnership