Bus Ethics & Soc Res-Forms & Nature of Business Organization

Front

Which of the following forms of business organization is the simplest and most common form of business ownership?
Options: Corporation, Partnership, Sole Proprietorship, Limited Liability Company

Back

Sole Proprietorship

Front

What form of business organization is classified into general and limited?

Back

Partnership

Front

This form of business organization is for tax purposes, separate entity and is considered a legal person. Name it.

Back

Corporation

Front

It is a business organization which is similar to a limited partnership. What is it?

Back

Limited Liability Company

Front

Which of the following statements DOES NOT tell about sole proprietorship? Owner is 100% liable for business debts. It is a business owned and run by someone for their own benefit. Its business’ existence is entirely dependent on the owner’s decisions.

Back

Ownership of proprietorship is easy to transfer.

Front

What do you call a type of partnership wherein both owners invest their money, property, labor, etc. to the business and both are 100% liable for business debts and that no formal agreement is required? Options: General, Limited, Specific, Unlimited

Back

General

Front

The following statements tell about limited partnership EXCEPT one. Which one is it?
- It requires a formal agreement between the partners.
- It must also file a certificate of partnership with the state.
- It does not require a formal agreement between the partners.
- It allows partners to limit their own liability for business debts according to their portion of ownership or investment.

Back

It does not require a formal agreement between the partners.

Front

Which of the following statements is a disadvantage of a corporation? Personal assets cannot be seized to pay for business debts. Corporate income is taxed twice with some exceptions. It limits the liability of the owner to debts or losses. It can be transferred to new owners fairly easily.

Back

Corporate income is taxed twice with some exceptions.

Front

Which of the following statements is an advantage of a limited liability company or LLC? Ownership is limited by certain state laws. Agreements must be comprehensive and complex. Beginning an LLC has high costs due to legal and filing fees. The profits of the LLC are shared by the owners without double-taxation.

Back

The profits of the LLC are shared by the owners without double-taxation.

Front

What are the two types of partnership?

Back

General and Limited