Economics Chapter 3 Quiz

A business organization owned by one person is called:

• Limited Partnership

• Sole Proprietorship

• Corporation

• General Partnership

The most common form of business organization in the United States is:

• Limited Partnership

• Sole Proprietorship

• Corporation

• General Partnership

The owners of a corporation are known as:

• Shareholders

• Stockholders

• Stakeholders

• Board of Directors

Which is NOT a disadvantage of a sole proprietorship:

• Limited Life

• Difficulty raising financial capital

• Limited Liability

• Long Hours

This means that the owner(s) is/are personally and financially responsible for the losses of a business:

• Financial Capital

• Repossession

• Business Hardships

• Unlimited Liability

Law firms and doctors offices are usually categorized under what type of business organization:

• Partnership

• Corporation

• Sole Proprietorship

• Franchise

This means that the business no longer exists when the owner dies, quits or sells:

• Limited Life

• Limited Liability

• Limited Contract

• Limited Proprietorship

This type of business organization accounts for the most revenue in the United States:

• Franchises

• Partnerships

• Corporations

• Sole Proprietorships

In this type of partnership, one partner is only held liable to the extent of their investment:

• General Partnership

• Sole Partnership

• Equal Partnership

• Limited Partnership

Which is NOT a disadvantage of a corporation:

• Expensive to start

• Regulated by the government

• Double taxation

• Unlimited life