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Business Organization

Total questions: 15

Worksheet time: 45mins

Name
Class
Date
1.

What business type has unlimited liability, a limited lifespan, and the owner gains ALL profits.

a)

C- Corporation

b)

Partnerships

c)

Sole Proprietorship

d)

Corporations

2.

True or False: S corporations have no requirements on how many shareholders they can have.

a)

True

b)

False

3.

What is a C Corporation?

a)

A corporation that can only have up to 100 Shareholders.

b)

A corporation that only has a couple of owners.

c)

The average company in today's society, can have an unlimited amount of share holders.

d)

A corporation, just with a C in front of it.

4.

True or False: A limited lifespan is an economic term that refers to the life a business has.

a)

True

b)

False

5.

Sally started a business with Tom and Dan. They set up the business, ALL of them being involved in the business choices. Sally likes working with Tom and Dan, but she hates the liability that comes with it. She could lose her house if she lost the business.

What type of business is this?

a)

Partnership

b)

Sole-Proprietorship

c)

Corporation

6.

What type of corporation is this? The corporation has 98 shareholders, it has a special tax status with the IRS, it faces single tax instead of double tax, and requires more documentation.

a)

C Corporation

b)

Limited Liability

c)

S Corporation

7.

The document given to businesses that confirms their private rights within a company from the government.

a)

Contract

b)

W-2 Form

c)

Charter

d)

Bill of Rights

8.

True or False: A W-2 form is a document that protects businesses during agreements with each other that the government can have access to, to ensure that the form agreements are met and regulated.

a)

True

b)

False

9.

The partners in a corporation. They typically own a stock or portion of the business. They decide who are the elected directors of a company.

a)

Shareholders

b)

The Board

c)

Some Billionare

d)

Mrs. Maddox

10.

Who is in-charge in a partnership?

a)

You

b)

Bob Ross

c)

A single owner.

d)

All Owners.

11.

How are Shareholders typically paid?

a)

Dividends

b)

Credit Cards

c)

I don't know, I slept all period

d)

In cash

12.

What makes a corporation different from a partnership or sole proprietorship?

a)

It has a unlimited lifespan, a owner, and that owner gets all profits,

b)

The life is unlimited, multiple choose all decisions, and they all personally have to put an arm and a leg into the business.

c)

There is limited liability, shareholders, and they can expand easier.

d)

I fell asleep again during this lesson, ask me tomorrow.

13.

A (a)   is an business that has two or more owners, unlimited liability, and a limited lifespan?

14.

Double Taxation is a characteristic of WHAT business type.

a)

S Corporation

b)

C Corporation

c)

Partnership

d)

Sole Proprietorship

15.

Michael wants to start a company. He doesn't want to have to personally be at risk, make any decisions by himself, and provide for the business by himself.

What type of business should he AVOID?

a)

Sole Proprietorship

b)

Corporation

c)

Partnership