Types of Business Organization

How many basic ways can businesses organize to earn profits?

• 1
• 2
• 3
• 4

Who plays an important role in all three business organizations?

• Governors
• Presidents
• Entrepreneurs
• Magistrates

A form of business organization with one owner who takes all the risks and all the profit is called - 

• partnership
• proprietorship
• corporation
• governorship

Which is NOT a basic type of business ownership?

• proprietorship
• partnership
• corporation
• retail

A form of business organization with two or more owners who share the risks and the profits - 

• proprietorship
• corporation
• wholesale
• partnership

A form of business organization that is authorized to act as a legal entity regardless of the number of owners. 

• corporation 
• proprietorship
• partnership
• distributor

In a corporation, owners share profit, but liability is limited to - 

• investment
• distribution
• theft
• production

A person who takes a risk to produce goods and services in search of profit - 

• entrepreneur
• magistrate
• profiteer
• baliff

What is a disadvantage of partnerships?

• ease of formation
• owners share responsibilities
• limited liability
• possibility of personality conflict

What is the advantage of corporations?

• minimal government regulation
• limited liability
• short life span
• has one owner