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Unit 5 Test (Business Organizations)

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

Which of the following is an advantage of sole proprietorship?

a)

There are almost no requirements to start up a sole proprietorship.

b)

The owner keeps all the profits.

c)

The owner makes all the decisions.

d)

All of the above statements are true.

2.

Which of the following is a disadvantage of sole proprietorship?

a)

They're hard to start up

b)

Personal property is protected under bankruptcy

c)

The owner takes all the liability

d)

The owner doesn't get to keep all the profits

3.

Lack of permanence applies to ______ .

a)

corporations

b)

sole proprietorships

c)

nonprofit organizations

d)

multinationals

4.

According to figure 8.1, the type of organization with the most sales in the United States is?

a)

Corporations

b)

Partnerships

c)

Sole Proprietorships

d)

Franchises

5.

a business owned and managed by a single individual

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Franchise

6.

a business organization owned by two or more persons who agree on specific division of responsibilities and profits

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Franchise

7.

a legal entity, or being, owned by individual stockholders, each of whom has limited liability for the firms debts

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Franchise

8.

a semi-independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a given area

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Franchise

9.

Payments to the parent company from the franchiser

a)

Franchise Fee

b)

Royalties

c)

Payment Agreement

d)

Operations Agreement

10.

a certificate of ownership in a corporation

a)

Stock

b)

Bond

c)

Share

11.

Shania and Nick own a convenience store together. They share equal responsibility and liability for the business, and each person receives 50% of the profits. What kind of business organization is it?

a)

Sole Proprietorship

b)

Partnership

c)

Cooperative

d)

Non-Profit

12.

What is the advantage of opening a franchise?

a)

Control over products

b)

Royalty payments

c)

Franchising fees

d)

Brand Recognition

13.

What is the advantage of opening a partnership?

a)

Full Control over products

b)

Shared Decision Making

c)

Unlimited Liability

d)

Brand Recognition

14.

What is the disadvantage of opening a corporation?

a)

Full Control over products

b)

Double Taxation

c)

Unlimited Liability

d)

Brand Recognition