ECON 8.1

The easiest type of business to start is a sole proprietorship.

• True

• False, replace "start" with "grow"

• False, replace "sole proprietorship" with "corporation"

• False, replace "easiest" to "hardest"

Unlimited liability is one of the main advantages of a sole proprietorship.

• True

• False, Replace "advantage" with "disadvantage"

• False, Replace "one" with "many"

• False, Replace "sole proprietorship" with "partnership"

Partnerships are the most numerous form of business organizations in the U.S.

• True

• False, replace "partnerships" with "corporations"

• False, replace "partnerships" with "franchises"

• False, replace "most" with "least"

Corporations have most of the rights of an individual, according to the law.

• True

• False, replace "individual" with "business"

• False, replace "corporations" with "franchises"

• False, replace "law" with "most people"

If a corporation goes out of business, common stockholders get their investment back before preferred stock holders do.

• True

• False, replace "corporation" with "partnership"

• False, replace "before" with "after"

• False, but don't change anything

The government document that grants permission to establish a corporation is called _____________.

• charter

• stock certificate

• partnership agreement

• limited liability agreement

A business run by a single person is a _______________.

• partnership

• corporation

• sole proprietorship

• LLC

In a retail business, the stock held in reserve is called ______

• raw materials

• inventory

• capital

• profits

Which of the following phrases best defines the term limited liability partnership?

• an organization that limits liability to the corporation rather than the individual owners

• partnership in which at least one person has less responsibility in the business operations and less liability for the business losses.

• partnership that is limited to three or more investors that split up responsibility and share an equal amount of liability

• a business model that combines aspects of corporations and partnerships

A document certifying ownership of part of a corporation is a _______________.

• charter

• stock certificate

• dividend check

• bond