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Social Studies
12th
grade
Chapter 8: Types of Business Organizations
20 questions
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- 1. Multiple ChoiceThis type of business is owned by one person.PartnershipSole ProprietorshipCorporationFranchise
- 2. Multiple ChoiceAdvantages of this business type are that the owner is their own boss and gets to keep all the profits.PartnershipSole ProprietorshipCorporationFranchise
- 3. Multiple ChoiceDisadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.Sole ProprietorshipPartnershipCorporationFranchise
- 4. Multiple ChoiceWhat is a major advantage of a business that is a partnership rather than a sole proprietorship?The responsibility for the business is sharedThe business is easy to set upThe partners are not responsible for business debtsThe business is easy to sell
- 5. Multiple Choice
What is a business owned by stockholders/investors but operated by others?
Sole Proprietorship
Partnership
Corporation
Limited Liability Partnership
- 6. Multiple Choice
Which is ONE disadvantage of Sole Proprietorship?
Less direct control
Disagreements
Hard to raise money
Unlimited Life
- 7. Multiple Choice
What is ONE advantage of a Corporation?
Difficult to start
Make all of the decisions
Easy to raise money!
Limited Life
- 8. Multiple Choice
Disadvantages include limited life and
the potential for conflict between partners
Sole Propriotorship
Partnership
Corporation
Franchise
- 9. Multiple Choice
Characteristics include owned by two or more people and may be general or limited
Sole Propriotorship
Partnership
Corporation
Franchise
- 10. Multiple Choice
Advantages include limited liability for owners, unlimited life, and ease of transfer of ownership.
Sole Propriotorship
Partnership
Corporation
Franchise
- 11. Multiple ChoiceWhat is a disadvantage of partnerships?ease of formationowners share responsibilitieslimited liabilitypossibility of personality conflict
- 12. Multiple ChoicePartners who are only responsible up to the extent of their investmentlimited partnershiptrading partnershipnon-trading partnershipspecial partnership
- 13. Multiple ChoiceA partnership in which all partners assume full personal liability for debts of the firmlimited partnershiptrading partnershipnon-trading partnershipgeneral partnership
- 14. Multiple ChoiceHow is a general partnership organized?Every partner shares equally in both responsibility and liabilityThe doctors, lawyers, or accountants who form a general partnership hire others to run the partnershipNo partner is responsible for the debts of the partnership beyond his or her investmentOnly one partner is responsible for the debts of the partnership
- 15. Multiple ChoiceWhich of the following is a disadvantage of corporations:High taxesUnlimited lifeUnlimited liabilityfinancial power
- 16. Multiple ChoiceWhich of the following is an advantage of the corporation as a form of business ownership:Less complex requirementsSeparate owners and managersLimited liabilityHigh Taxes
- 17. Multiple ChoiceThe owners of a corporation are calledDirectorsPartnersShareholdersFounders
- 18. Multiple Choice
Most expensive to start
Sole Proprietorship
Partnership
Corporation
Limited Liability Partnership
- 19. Multiple Choice
Shortest lifespan
Sole Proprietorship
Partnership
Corporation
Limited Liability Partnership
- 20. Multiple Choice
Ownership represented by stock
Sole Proprietorship
Partnership
Corporation
Limited Liability Partnership
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