BUSINESS STRUCTURES

What is a social enterprise

• A business whose goal is  to maximise profit
• To meet society needs
• To maximise sales
• To maximise profit margins

The profits and losses are shared between a few owners in this type of business.

• Company
• Social Enterprise
• Partnership
• Sole Proprietorship

This type of business is considered a separate legal entity in the eyes of the law.  It is owned by shareholders.

• Cooperative
• Company
• Partnership
• Sole Proprietorship

Which of the following is not an advantage of a sole proprietorship?

• Easy to start
• Owner is their own boss
• Owner has unlimited liability
• Owner receives all the profits

All individuals would be good at being their own boss, because we all like to do what we want.

• True
• False

One advantage of a partnership is that there are more sources of capital available than in a sole proprietorship.

• True
• False

A partnership agreement:

• Helps prevent disagreements
• Encourages disagreements
• Is a waste of time
• None of the above

Susan, Phil, Robert, and Martina are all lawyers. After several years of working for big firms, they decide to pull their resources and start their own law practice together. The four of them will make all their business decisions together and will share all of the profits and financial risk. Their new law firm is a 

• partnership
• corporation
• sole proprietorship
• monopoly

-Comprised of two preexisting companies
-Resources and talent pooled to achieve business objectives
-Business relationship is temporary; profits shared

• Partnership
• Limited Partnership
• Franchise
• Joint Venture

In a Partnership, the partner is also known as the:

• Financier 
• Monopolist
• Venture Capitalist
• Silent Partner