Advantages and Disadvantages of the Forms of Business Organizations

Question 1

(A)Tax Preparation is faster

Answer 1

Sole Proprietorship

Question 2

(A)Lower start-up cost

Answer 2

Sole Proprietorship

Question 3

(A)Handling money is easier

Answer 3

Sole Proprietorship

Question 4

(A)Has the least government rules and regulations that affect them

Answer 4

Sole Proprietorship

Question 5

(A)Can own the business for as long as he/she wants, and to move out, he/she can cash in and sell the business

Answer 5

Sole Proprietorship

Question 6

(A)Can own the business for as long as he/she wants, and to move out, he/she can cash in and sell the business

Answer 6

Sole Proprietorship

Question 7

(A)Can pass the business down to his/her heir

Answer 7

Sole Proprietorship

Question 8

(D)The owner is personally liable for all debts and actions of the enterprise

Answer 8

Sole Proprietorship

Question 9

(D)There is lack of financial control because of looser structure

Answer 9

Sole Proprietorship

Question 10

(D)There could be difficulties in raising capital

Answer 10

Sole Proprietorship

Question 11

(A)Lacks formality compared to a corpoartion = not much rules

Answer 11

Partnership

Question 12

(A) Easy to start

Answer 12

Partnership

Question 13

(A) You share the burden with others

Answer 13

Partnership

Question 14

(A) Every partner has skills that can be utilized in the business

Answer 14

Partnership

Question 15

(A) Two heads are better than one

Answer 15

Partnership

Question 16

(A) There is privacy unlike a corporation

Answer 16

Partnership

Question 17

(A) Partners own and control the business

Answer 17

Partnership

Question 18

(A) Easy access to funds

Answer 18

Partnership

Question 19

(A)More partners = more funds/capital

Answer 19

Partnership

Question 20

(D) No independent legal status

Answer 20

Partnership

Question 21

(D) Partners are personally liable for the debts

Answer 21

Partnership

Question 22

(D) Lacks the sense of prestige

Answer 22

Partnership

Question 23

(D) More difficult to raise money unlike a corporation

Answer 23

Partnership

Question 24

(D) Decision-making can be slower because there is need of consultation

Answer 24

Partnership

Question 25

(D) Potential differences conflict with each other

Answer 25

Partnership

Question 26

(A) Liability is limited to the amount of their investments

Answer 26

Corporation

Question 27

(A) May sell shares to increase the funds

Answer 27

Corporation

Question 28

(A) Easy to sell shares

Answer 28

Corporation

Question 29

(A) A corporation's life has no limit, it can pass generations.

Answer 29

Corporation

Question 30

(D) It is subject to Double Taxation

Answer 30

Corporation

Question 31

(D) The management team of a corporation can operate the business without any real oversight from the owners

Answer 31

Corporation