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Types of Business Organisation

Total questions: 150

Worksheet time: 1hrs 23mins

Name
Class
Date
1.
What is a business owned and operated by one person?
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
2.
What is a business owned by stockholders/investors but operated by others?
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
3.
What is a business owned and operated by two or more people?
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
4.
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
5.
Which is ONE disadvantage of Sole Proprietorship?
a)
Less direct control
b)
Disagreements
c)
Hard to raise money
6.
What is ONE advantage of a Partnership?
a)
Someone else can help with decisions, etc.
b)
Double taxes
c)
Disagreements
7.
What is ONE disadvantage of a Partnership?
a)
Easier to start
b)
Have to share the profits
c)
Help in making decisions
8.
What is ONE advantage of a Corporation?
a)
Difficult to start
b)
Make all of the decisions
c)
Easy to raise money!
9.
What is ONE disadvantage of a Corporation?
a)
Disagreements
b)
Less direct control
c)
The risk is all on one person
10.
Which business type makes up approximately 75% of all businesses?
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
11.
Which business type has the most sales in the USA?
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
12.

A company wants to computerize its accounting system. It issues stocks to raise additional funds.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

13.

3. Mary opened a dance studio. She receives all the profits from her students’ lessons.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

14.

Mr. Lewis pays taxes on dividends for stocks he owns in a manufacturing company. The company also pays taxes on its income before distributing it to stockholders.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

15.

Dan, Tony, and Mac own a pizza parlor. They rotate hours and days off.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

16.

Mr. Wells owns a card shop. Because baseball cards have declined in popularity his business is struggling. He decides he has to sell his house to pay off his business debts.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

17.

Unger and Unger is a law firm consisting of two brothers who started their own business. They both are responsible for all profits and risks that their firm will have.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

18.

8. A person who takes a risk to produce goods and services in search of a profit is an entrepreneur. In which kind of business structure may entrepreneurs establish a business?

a)

Partnerships and Corporations

b)

Sole Proprietorships, Partnerships, and Corporations

c)

Only Corporations

d)

Sole Proprietorships and Corporations

19.

9. What type of business is described in the diagram below?

a)

Sole Proprietorships

b)

Partnerships

c)

Corporation

20.

10. What characteristic of a corporation is missing from the diagram on the below?

a)

Owner shares the profits with family members only

b)

Stockholders share the profits

c)

Main owner receives the majority of profits

d)

Board of Supervisors has the final say on new products

21.

2. Mario and his brother Luigi started a plumbing company together. They split the profits and the expenses.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

22.

Jimbo set up a pizza shop right beside a high school to take advantage of the unhealthy eating habits of teens. What type of ownership is this?

a)

Partnership

b)

Sole Proprietorship

c)

Cooperative

d)

Corporation

23.

This is an example of a non-profit business.

a)

Midtown Ford

b)

Thai Express

c)

Sunova Credit Union

d)

Canadian Cancer Society

24.

Any type of business that uses components parts, or raw materials to make finished goods.

a)

Merchandising

b)

Manufacturing

c)

Web-based

d)

Service

25.

Big Frank works at a lumber yard in which creates 2 by 4s for homes construction. What type of business does he work for?

a)

Manufacturing

b)

Non-profit

c)

Merchandising

d)

Service

26.

Fast Eddie decided to create a store @ KP selling firecrackers to teens. What type of business would this be?

a)

Web-based

b)

Service

c)

Merchandising

d)

Corporation

27.

Someone who owns their own business:

a)

receives all of the profit

b)

splits it with a partner

c)

gives some of the profit to the shareholders

d)

does not receive any profit

28.

This type of business is pretty much like a human being.

a)

Web-based

b)

Corporation

c)

Franchise

d)

Cooperative

29.

Slick Stan wants to bring a well known shoe shining company to Springfield. What type of business ownership would this be?

a)

Franchise

b)

Non-profit

c)

Partnership

d)

Manufacturing

30.

This type of business is owned by the government

a)

A manufacturing business

b)

A cooperative

c)

A non-profit

d)

Crown Corporation

31.

A non-profit does not make any money for its shareholders because

a)

All the profit goes to the government

b)

They don't make any money whatsoever and are money losing organizations

c)

All money it receives goes directly to the organization

d)

The shareholders do not own the franchise

32.

This is an example of a Crown Corporation

a)

Manitoba Hydro

b)

Canadian National Railway

c)

Air Canada

d)

Oakbank Insurance

33.

Slick Stan and Jimbo decided to go into business together selling VHS players. What type of business ownership is this?

a)

Sole propreitroship

b)

Partnership

c)

A cooperative between 2

d)

a corporation

34.

Noah Depiero's cool aunt Angela gave him some money to invest into a publicly traded company in hopes he would strike it rich. Greedy Angela would then take all the money from him. Noah would have invested in what type of business?

a)

Cooperative

b)

Sole Proprietorship

c)

Corporation

d)

Non-Profit

35.

Mr. MacLean got really excited one day when he got his mail. In it he saw a cheque from Co-op giving him some money back. He got this back because Co-op is at:

a)

Web-based

b)

Corporation

c)

Partnership

d)

Cooperative

36.

One cool and rainy Saturday afternoon Claire Erin went on to Google Finance to check to see how her stocks were doing. The company she invested in is an example of:

a)

a non-profit

b)

A sole proprietorship

c)

a corporation

d)

a partnership

37.
Partners who are only responsible up to the extent of their investment
a)
limited partnership
b)
trading partnership
c)
non-trading partnership
d)
special partnership
38.
What is a disadvantage of partnerships?
a)
ease of formation
b)
owners share responsibilities
c)
limited liability
d)
possibility of personality conflict
39.
Which of the following is a disadvantage of corporations:
a)
High taxes
b)
Unlimited life
c)
Unlimited liability
d)
financial power
40.
Which of the following is an advantage of the corporation as a form of business ownership:
a)
Less complex requirements
b)
Separate owners and managers
c)
Limited liability
d)
High Taxes
41.
The owners of a corporation are called
a)
Directors
b)
Partners
c)
Shareholders
d)
Founders
42.
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
43.
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
44.
This type of business is owned by one person.
a)
Partnership
b)
Sole Proprietorship
c)
Corporation
d)
Franchise
45.
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
46.
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
47.
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
48.

What is a business owned by stockholders/investors but operated by others?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Limited Liability Partnership

49.

Which is ONE disadvantage of Sole Proprietorship?

a)

Less direct control

b)

Disagreements

c)

Hard to raise money

d)

Unlimited Life

50.

What is ONE advantage of a Corporation?

a)

Difficult to start

b)

Make all of the decisions

c)

Easy to raise money!

d)

Limited Life

51.

Disadvantages include limited life and

the potential for conflict between partners

a)

Sole Propriotorship

b)

Partnership

c)

Corporation

d)

Franchise

52.

Characteristics include owned by two or more people and may be general or limited

a)

Sole Propriotorship

b)

Partnership

c)

Corporation

d)

Franchise

53.

Advantages include limited liability for owners, unlimited life, and ease of transfer of ownership.

a)

Sole Propriotorship

b)

Partnership

c)

Corporation

d)

Franchise

54.

Most expensive to start

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Limited Liability Partnership

55.

Shortest lifespan

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Limited Liability Partnership

56.

Ownership represented by stock

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Limited Liability Partnership

57.
This type of business is owned by one person.
a)
Partnership
b)
Sole Proprietorship
c)
Corporation
d)
Franchise
58.
This type of business is owned by two or more people.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
59.
This type of business is owned by many people called stockholders.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
60.
This type of business is a contractual agreement with a parent company to sell its products/services in an area.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
61.
Law firms and doctor's offices are examples of.....
a)
Sole Proprietorships
b)
Partnerships
c)
Corporations
d)
Franchises
62.
Nike, Google and Apple are examples of.....
a)
Sole Proprietorships
b)
Partnerships
c)
Corporations
d)
Franchises
63.
McDonald's and Burger King are examples of....
a)
Sole Proprietorships
b)
Partnerships
c)
Corporations
d)
Franchises
64.
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
65.
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
66.
Advantages of this business include: easier to get money from the bank to start, share skills and share risks.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
67.
Disadvantages of this business type include: needs a partnership agreement, partners might not get along, owners share profits, unlimited liability.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
68.
Advantages of this type of business include: selling stock to raise money, limited liability.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
69.
Disadvantages of this type of business include: company is taxed on profits, regulated by the government, and hard to start.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
70.
Advantages of this type of business include: easy to start, and you can rely on a good company name and expertise.
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
Franchise
71.
When comparing the four main types of business organizations, which protects owners the MOST from personal financial liability due to being sued by a customer?
a)
Sole Proprietorship
b)
Partnership
c)
Franchise
d)
Corporation
72.

Disadvantages of this type of business include: parent company is strict, you are limited in what you sell, and you must operate like every other franchise.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Franchise

73.

How is a corporation different from a sole proprietorship or partnership?

a)

A corporation has only one or two owners.

b)

A corporation is usually owned by one person.

c)

A corporation requires a legal charter with the state.

d)

The owners (stockholders) have limited liability.

74.

No paperwork (charter or agreement) is required to start which type of business?

a)

Partnership

b)

Franchise

c)

Sole Proprietorship

d)

Corporation

75.

Which type of business allows the owner to keep all of the profit for him/herself?

a)

Partnership

b)

Franchise

c)

Sole Proprietorship

d)

Corporation

76.

Which business depends on just one person for the skills and talents to run the business?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Franchise

77.

A very large business with branches all over the world.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

78.

A father who wants to take his son into the business with him should form this type of business.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

79.

Someone who wants to control every aspect of their business should form this type of business.

a)

Sole Proprietor

b)

Partnership

c)

Corporation

80.

Over 2 millions people own stock in American Steel; what type of business is it?

a)

Sole Proprietorship

b)

Paartnership

c)

Corporation

81.

Maria is using her savings to open a shop selling clothing from Mexico. What type of business is it?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

82.

Louise and Susan are meeting to plan a new advertising campaign for the town newspaper they own. What type of business do they have?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

83.

When Luigi's Pizzeria went out of business, he was still responsible for paying all of the restaurant's bills. What type of business did he have?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

84.

Marco's computer repair business has limited financial resources. What type of business is it?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

85.

This business is long lasting, extending over several generation of owners; what type of business is it?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

86.

This business is legally separate from individual owners, and the owners are not personally responsible for debts and obligations of the business. What type of business is it?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

87.

When one owner dies, the business is usually dissolved. What type of business is it?

a)

Sole Proprieetorship

b)

Partnership

c)

Corporation

88.

Stockholders get paid dividends when this type of business makes money.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

89.

Max's Cupcake Shop is probably an example of a ...

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

90.

Google, Amazon, and Facebook are examples of...

a)

Sole Proprietorships

b)

Partnerships

c)

Corporations

91.

Tracey and Doug's Dog Wash Boutique is probably an example of a...

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

92.

Lillian receives all of the profits and is personally responsible of all of the losses of her business; what type of business does she have?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

93.
A type of business ownership in which one or more of the owners does not have full liability is called a:
a)
General partnership
b)
Limited partnership
c)
Sole proprietorship
d)
Service organization
94.
A characteristic of a sole proprietorship is that the owner:
a)
Has access to unlimited funds
b)
Receives all the profit
c)
Transfers all the risk
d)
Delegates all functions
95.
What do business owners consider when they select a business ownership structure?
a)
Personal circumstances, type of business, and product mix
b)
Product versatility, financial needs, and advertising strategies
c)
Personal circumstances, financial needs, and type of business
d)
Product versatility, advertising strategies, and personal circumstances
96.
To form my business, I used all of my savings and borrowed from the bank, and I'm personally liable for all of the debts. This statement is an example of which of the following forms of business ownership:
a)
Partnership
b)
Sole proprietorship
c)
Corporation
d)
Cooperative
97.
John, Robert, and Charles were college friends who wanted to start a business. John has creative ability, Robert's expertise is selling, and Charles' expertise is management. However, each has limited capital. The ideal business ownership for these young men is a
a)
Merger
b)
Partnership
c)
Franchise
d)
Corporation
98.
If all of the individuals who own a business share unlimited liability for the business's losses, these individuals are part of a(n)
a)
Private Corporation
b)
General partnership
c)
S Corporation
d)
C Corporation
99.
Lois and Lora plan to open a florist shop. Lois is unable to devote full time to the daily operations of the shop but wishes to provide financial support. Which form of business partnership is most likely to appeal to Lois?
a)
Private
b)
Nonprofit
c)
General
d)
Limited
100.
The Scott Company decided to sell stock to raise capital. Under what form of business organization does the company operate?
a)
Corporation
b)
Cooperative
c)
Partnership
d)
Sole proprietorship
101.
What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public?
a)
Limited
b)
Franchise
c)
C Corporation
d)
Private
102.
A type of state-chartered corporation that was developed to help small businesses by taxing them as individuals in a partnership is a(n) __________ corporation.
a)
S Corporation
b)
C Corporation
c)
Private
d)
Limited
103.
What type of corporation sells millions of shares and must furnish complete information about its earnings, assets, and debts?
a)
C Corporation
b)
S Corporation
c)
Private
d)
Limited
104.
The American Red Cross is an example of a(n) ___________ corporation.
a)
Hybrid
b)
Nonprofit
c)
S Corporation
d)
C Corporation
105.
One of the characteristics of the form of business ownership known as an LLC is that
a)
This kind of business can last indefinitely.
b)
It is required to have at least three owners (members).
c)
The IRS collects taxes based on the LLC�s gross income.
d)
The owners' personal property cannot be taken to pay the business�s debts.
106.
One reason a physicians' practice might form a partnership as an LLP is to
a)
Ensure that the business experiences unlimited liability.
b)
Take advantage of higher dividend returns on shares of its stock.
c)
Protect innocent partners from the malpractice of another partner.
d)
Permit the general public to purchase licensing rights in the practice.
107.
Wendy's sells the right to operate its restaurants to individuals who meet the company's criteria. The arrangement between Wendy's and these individuals is an example of
a)
A partnership agreement
b)
Multi-level marketing
c)
Licensing
d)
Franchising
108.
Jake wanted to run his own business but was unsure that he had adequate business skills to be successful. Which type of business would give Jake the help he needs?
a)
Private Corporation
b)
Sole proprietorship
c)
Business-format franchise
d)
Product trade-name franchise
109.
Which of the following is a characteristic of a product trade-name franchise:
a)
It is not open to the public
b)
The franchisee can choose the name of the business
c)
The franchisee has unlimited liability
d)
It is owned by shareholders
110.
Jane is the owner of a pizza shop associated with a national chain of pizza restaurants. She established her business in a regional supermarket. The pizza shop is referred to as a
a)
Host franchise
b)
Strategic alliance
c)
Master licensee
d)
Piggyback franchise
111.
Olivia runs a home-based business that distributes high quality, handmade baskets. She sells the products and earns commissions on the baskets sold by four other basket representatives. This is an example of:
a)
Product licensing
b)
Product trade-name franchising
c)
Multi-level marketing
d)
Strategic partnering
112.
Illegally run organizations that emphasize the collection of high fees from potential product distributors are often referred to as
a)
Pyramid schemes
b)
Pressure-cooker tactics
c)
Marketing racket
d)
Deceptive advertising gimmicks
113.
ABC Specialty Wear is the only company that has written permission to use a national football team�s logo on its sportswear. This is an example of a
a)
Product trade-name
b)
Sole proprietorship
c)
Contract licensing agreement
d)
Limited joint-venture contract
114.
Which of the following statements is true regarding joint ventures:
a)
Joint-venture arrangements are usually short-term relationships.
b)
Joint ventures are used only when it is necessary to raise a lot of capital.
c)
Large corporations are the only business structures that can benefit from joint ventures.
d)
An independent attorney must always be consulted before signing a joint-venture agreement.
115.

What is a Sole Proprietorship?

a)

A business where 2 or more people share ownership

b)

A business owned by shareholders

c)

A business that is owned by one individual

116.

What percentage of the profits in sole proprietorship is the owner designated to?

a)

75%

b)

100%

c)

54%

d)

0%

117.

Which of the following is an advantage of sole proprietorship?

a)

Owner has complete control

b)

Owner gets all the stress

c)

Cannot raise capital

d)

All the above

118.

A sole proprietorship is easier and less costly than starting any other form of business.

a)

Ture

b)

False

119.

Partnership requires at least three people

a)

True

b)

False

120.

In partnership, decisions require agreement

a)

True

b)

False

121.

Business owned by shareholders is

a)

Partnership

b)

Sole proprietorship

c)

Corporation

d)

Franchise

122.

How many members are in a sole proprietorship?

a)

4

b)

2

c)

1

d)

3

123.

A group of people who jointly oversee the activities of a corporation

a)

Employees

b)

Board of Directors

c)

Volunteers

d)

None of the above

124.

A corporation can continue to exist after the death of its owners

a)

True

b)

False

125.

Franchisors usually provide all of the listed items except....

a)

Advertising

b)

Training

c)

Loan

d)

Equipment

126.

How many years to franchise agreements last?

a)

1-5

b)

5-10

c)

10-15

d)

15-20

127.

A company owned and ran by 1 individual

a)

Sole Proprietorship

b)

Corporation

c)

Partnershkp

d)

Conglomerate

128.

A company so large it is recognized as a separate legal entity

a)

Sole Proprietory

b)

Corporation

c)

Partnership

d)

Conglomerate

129.

A business made up of two or more people who share responsibility in a company

a)

Sole Proprietorship

b)

Corporation

c)

Partnership

d)

Non-Profit

130.

The goal of this type of organization is not to make money but rather to serve a community

a)

Sole Proprietorship

b)

Corporation

c)

Partnership

d)

Non-Profit

131.

The ________ of a local town is a non-profit organization whose goal is to promote local businesses

a)

Chamber of Commerce

b)

Waffle House

c)

Mayors Office

d)

Better Business Bureau

132.

This type of merger occurs when businesses are at different points in the production process

a)

Horizontal

b)

Vertical

c)

Conglomerate

d)

Hostile Takeover

133.

This is sold by corporations to consumers allowing them a stake in the company and its earnings

a)

Bonds

b)

Cars

c)

Stock

d)

Inventory

134.

This is the non-cash charge a firm takes for the general wear and tear on its capital goods

a)

Expenditure

b)

Payment

c)

Share

d)

Depreciation

135.

A corporation that operates in many different countries or nations

a)

Major

b)

Transcontinental

c)

Multinational

d)

Massive

136.

This type of merger occurs when businesses are producing the same or similar product at a comparable rate

a)

Horizontal

b)

Vertical

c)

Conglomerate

d)

Hostile Takeover

137.
What is a business owned and operated by one person?
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
138.
What is a business owned by stockholders/investors but operated by others?
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
139.
What is a business owned and operated by two or more people?
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
140.
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
141.
Which is ONE disadvantage of Sole Proprietorship?
a)
Less direct control
b)
Disagreements
c)
Hard to raise money
142.
What is ONE advantage of a Partnership?
a)
Someone else can help with decisions, etc.
b)
Double taxes
c)
Disagreements
143.
What is ONE advantage of a Corporation?
a)
Difficult to start
b)
Make all of the decisions
c)
Easy to raise money!
144.
What is ONE disadvantage of a Corporation?
a)
Disagreements
b)
Less direct control
c)
The risk is all on one person
145.
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
146.

A father who wants to take his son into the business with him should form this type of business.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

147.

Maria is using her savings to open a shop selling clothing from Mexico. What type of business is it?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

148.

Google, Amazon, and Facebook are examples of...

a)

Sole Proprietorships

b)

Partnerships

c)

Corporations

149.
What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public?
a)
Limited
b)
Franchise
c)
C Corporation
d)
Private
150.

Unlimited liabilty means...

a)

that you only lose what you invest in the business if it fails

b)

that you are responsible for all business debts if the business fails, you could even lose personal possessions