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Types of Business Organizations

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

One advantages of a ___ is limited liability for owners.

a)

Sole Propriotorship

b)

Partnership

c)

Corporation

d)

All are correct

2.

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

d)

Shareholders own the business

3.

Which is ONE disadvantage of Sole Proprietorship?

a)

Less direct control

b)

Disagreements

c)

Hard to raise money

d)

Shareholders have too much influence

4.

Owned by two or more people and may be general or limited.

a)

Sole Propriotorship

b)

Partnership

c)

Corporation

d)

All are correct

5.

One disadvantage of ____ is the potential for conflict among partners.

a)

Sole Propriotorship

b)

Partnership

c)

Corporation

d)

All are correct

6.

This type of business is owned by one person.

a)

Partnership

b)

Sole Proprietorship

c)

Corporation

d)

Franchise

7.

The owner is their own boss and gets to keep all the profits.

a)

Partnership

b)

Sole Proprietorship

c)

Corporation

d)

Franchise

8.

1)owner pays for everything 2)Difficult to get money to start 3)owner might lack skills 4)unlimited liability.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Franchise

9.

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

10.

Sammy's School Supplies is a small, locally owned store. This most likely represents what type of business?

a)

corporation

b)

Both are correct

c)

sole proprietorship

11.

What is a disadvantage of partnerships?

a)

ease of formation

b)

owners share responsibilities

c)

limited liability

d)

possibility of personality conflict

12.

What is ONE advantage of a Corporation?

a)

Difficult to start

b)

Make all of the decisions

c)

Easy to raise money!

d)

There are no shareholders to influence decisions

13.

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

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

All are correct

14.

What is a business owned and operated by two or more people, w/ no shareholders?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

All are correct

15.

Which of the following is NOT a business organization?

a)

Sole Proprietorship

b)

Corporation

c)

Perfect Competition

d)

Partnership