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Dis/Advantages of Partnerships and Corporations

Total questions: 9

Worksheet time: 13mins

Name
Class
Date
1.

True/False: Partnerships are easy to form and require minimal paperwork.

a)

True

b)

False

2.

Are these advantages or disadvantages of a partnership?

Categorize the following

Ease of start-up

Availiablility of funds capital/credit

Combined skills and knowledge

Unlimited liability

Frozen investment

Management disagreements

Personal interest

Retention of profits

No special taxes

Advantages
Disadvanteges
3.

Partnerships pay ___ income tax.

a)

no

b)

some

c)

a lot of

4.

Partnerships are ​ (a)   if any one of the general partners withdraws from the business, is legally incompetent, or ​ (b)  

Choose from the below words
terminated
continued
dies.
goes on vacation.
is disliked.
5.

Limited liability is a feature of a ​ (a)  

Choose from the below words
corporation.
business.
partnership.
6.

A partnership is?

a)

A feature of corporate ownership that limits each owner's financial responsibility.

b)

Appointed by a board of directors.

c)

A voluntary association of two or more persons to act as co-owners of a business for profit.

d)

A person who invests money in a business but who has no management responsibility.

7.

A corporation is?

a)

An artificial person, created by law, with most of the legal rights of a real person.

b)

A real person who exists outside fo paper.

c)

A person who assumes full or shared responsibility for operating a business.

8.

Organize the advantages and disadvantages of corporations.

Categorize the following

Limited liability

Ease of raising capital

Ease of transfer of ownership

Difficulty and expense of formation

Double taxation

Lack of secrecy

Internal conflict

Advantages
Disadvantages
9.

Corporations must pay a tax on their ​ (a)   and profits received as ​ (b)  

Choose from the below words
profits
dividends.
gifts.
liabilities.
deficits
debts