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WorksheetsBusiness Organization
Total questions: 30
Worksheet time: 48mins
Advantages of a partnership are:
The partners split the profit
Unlimited liability
Raise more capital than a sole trader
Share the workload
Advantages of a sole trader are:
Limited liability
The owner makes all the decisions
The owner takes all the profit
Can raise substantial capital
Factories, machinery, and farm tractors are examples of which factor of production?
Land
Labor
Entrepreneurship
Capital
Land, labor, capital, and entrepreneurship are
economics
ethics
factors of production
Gross domestic Product (GDP)
Articles of incorporation must be filed with the Secretary of State’s office in the state of operation. The articles of incorporation must include the names of the corporation’s founders, name of the _______, and type of business that will be conducted.
proprietorship
partnership
corporation
LLC
The simplest and most common form of business ownership is a(n)______.
proprietorship
partnership
corporation
LLC
A partner that does not participate in running the business is called
general partner
unlimited partner
limited partner
LLC
The two kinds of partnership are
general
unlimited
limited
cooperative
Association of two or more persons who co-own a business with the objective of earning a profit.
proprietorship
partnership
corporation
LLC
Written contract that establishes a partnership; also called the articles of partnership.
articles of corporation
partnership agreement
articles of proprietorship
articles of limited liability corporation (LLC)
How is a corporation different from a sole proprietorship?
Corporations are owned by only one person
Sole proprietorships have limited liability for the owners
Corporations can sell stock to raise money for the business.
Sole proprietorships require a legal charter to start the business.
All partners are equally responsible for management and debts.
Sole proprietorship
General Partnership
Limited Partnership
Venture Capitalist
A business partnership has ___________ who share the risks and the profits
One owner
Two or more owners
No more than three owners
Five or more owners
Which of the following is a disadvantage of sole proprietorship?
They're hard to start up
Personal property is protected under bankruptcy
The owner takes all the risk and responsibility
The owner doesn't get to keep all the profits
Which of the following is an advantage of sole proprietorship?
There are almost no requirements to start up a sole proprietorship.
The owner keeps all the profits.
The owner makes all the decisions.
All of the above statements are true.
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?
Partnerships and Corporations
Sole Proprietorships, Partnerships, and Corporations
Only Corporations
Sole Proprietorships and Corporations
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.
Sole Proprietorship
Partnership
Corporation
3. Mary opened a dance studio. She receives all the profits from her students’ lessons.
Sole Proprietorship
Partnership
Corporation
2. Mario and his brother Luigi started a plumbing company together. They split the profits and the expenses.
Sole Proprietorship
Partnership
Corporation
Which of the following is the definition for Partnership?
business investment that involves renting or leasing another successful business model
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United States
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
Which of the following is the definition for sole proprietorship
business investment that involves renting or leasing another successful business model
unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United States
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm
What type of business structure is owned by many people?
Corporation
Partnership
Sole Proprietorship
LLC
A type of business that consists of two or more people?
Sole Proprietorship
Partnership
Corporation
Easy to start, Owner is his/her own boss, Owner keeps all the profits - These are advantages of what type of business
Partnership
Corporation
Cooperative
Sole Proprietorship
In which type of organization does one person take all the risks?
Corporation
Limited Liability Company
Sole Proprietorship
Partnership
What is a disadvantage of a partnership?
ease of formation
owners share responsibility
limited liability
possibility of personality conflict
A form of business organization that is authorized to act as a legal entity regardless of the number of owners.
Sole Proprietorship
Partnership
Corporation
Limited Liability Company
What kind of business is BEST described by these statements?
I am the only owner of my business.
I take all the risks of doing business.
I keep all the profits
Sole Proprietorship
Partnership
Corporation
The easiest form of business to start and end is a(n)
limited liability partnership
corporation
franchise
proprietorship
