Quiz 3 Flashcards
(20 cards)
the easiest and most popular form of business ownership sole proprietorship (a business that is owned and operated by one person). ?
True
A business that is owned and operated by one person.
True or False: One of the advantages of sole proprietorship is the owner has complete authority over all business activities.
True
True or False: One of the advantages of sole proprietorship is that the business is totally reliant on the skills and abilities of the buyer.
False
A partnership draws on the skills, knowledge, and personal resources of more
than one person (an unincorporated business with two or more owners who
share the decisions, assets, liabilities, and profits)
True
Draws on the skills, knowledge, and personal resources of more than one person.
True or False: A limited partner is a participant in a partnership who has unlimited personal liability and takes full responsibility for managing the business.
False
Corporation is a business that is registered by a state and operates apart from
its owners; it issues shares of stock and lives on after the owners have sold
their interest or passed away
True
What is the best definition of a sole proprietorship?
The business only employs one person
The business is owned by one person
The firm has a single customer
There is a single firm in the industry.
The business is owned by one person.
One of the claimed advantages of a sole proprietorship business is that:
Owners have limited liability
Shares can be sold to raise capital
Decisions and responsibilities can be shared
The owner has independence
The owner has independence.
Fill in the blank: One of the forms of business organization owned by a manager is __________.
Sole Proprietorship
Partnership
Corporation
Cooperative
Sole proprietorship
Which of the following is NOT a disadvantage of sole proprietorship?
Limited source of capital
Business entity’s unlimited existence
Proprietor’s unlimited liability
Creditors can run after the personal assets of the Sole proprietor in case the assets
of the business are not enough to cover its existing liabilities
Business entity’s unlimited existence.
Which of the following is NOT a disadvantage of a Partnership?Unlimited liability
Limited existence
mutual agency of the partners
larger sources of funds
Larger sources of funds.
What entity pays taxes on earnings; its shareholders pay taxes as well?
Corporation
What is a legal entity that makes money for reasons other than the owner’s profit?
Profit Organization
Non-profit Organization
Mutual-benefit Organization
Corporation
Non-profit Organization
Which of the following do not belong to the group?
The business is easy to dissolve, if desired
Decision making is clear-out
Owner gets all the profit
Sole Proprietors have unlimited liability
Sole proprietorship…..
Which of the following do not belong to the group?
Limited capital and other resources
Sole Proprietors have unlimited liability
Easiest and least expensive form of ownership to organize.
Their business and personal assets are at risk
Easiest and least expensive form of ownership to organize.
One advantage of _____________ is that there is an equal division of profits based on the agreement as partners.
Sole Proprietorship
Partnership
Corporation
Cooperative
Partnership
One disadvantage of _____________ is that partners are jointly and individually liable for the actions of the other partners.
Sole Proprietorship
Partnership
Corporation
Cooperative
Partnership
True or False: One of the disadvantages of partnership is that it may have a limited life; it may end upon the withdrawal or death of a partner.
True
What type of partnership serves as investors only; they have no control over the company and are not subject to the same liabilities as the general partners?
General Partnership
Limited Partnership
Corporation
Cooperative
Limited Partnership
What is a group enterprise made up of several traders, consumers or producers interested in producing or trading as a group?
Corporation
Cooperative
Sole Proprietorship
Partnership
Cooperative
