Business Organizations

This type of business is owned by one person.

• Partnership
• Sole Proprietorship
• Corporation
• Franchise

Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

• Partnership
• Sole Proprietorship
• Corporation
• Franchise

Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.

• Sole Proprietorship
• Partnership
• Corporation
• Franchise

A business owner who prefers to maintain complete control of all business activities might consider structuring the venture as a(n)

• sole proprietorship
• general partnership.
• franchise
•  corporation.

The disadvantages of this business organization include unlimited liability, difficulty raising financial capital, difficulty attracting qualified employees, and having a limited life

• Sole Propriotorship
• Partnership
• Corporation

A partnership in which all partners assume full personal liability for debts of the firm

• limited partnership
• trading partnership
• non-trading partnership
• general partnership

Partners who are only responsible up to the extent of their investment

• limited partnership
• trading partnership
• non-trading partnership
• special partnership

How is a general partnership organized?

• Every partner shares equally in both responsibility and liability
• The doctors, lawyers, or accountants who form a general partnership hire others to run the partnership
• No partner is responsible for the debts of the partnership beyond his or her investment
• Only one partner is responsible for the debts of the partnership

What is a major advantage of a business that is a partnership rather than a sole proprietorship?

• The responsibility for the business is shared
• The business is easy to set up
• The partners are not responsible for business debts
• The business is easy to sell

Joe is starting a small home-based consulting business. He possesses computer knowledge but lacks marketing skills. The form of business ownership that Joe might consider establishing is a(n)

• corporation
• sole proprietorship
• monopoly
• general partnership.