Business Organization Quiz

Which of the following is an advantage of a sole proprietorship?

• ease of starting a business

• being your own boss

• pride of ownership

• all of the above

The major advantage of a franchise is:

• training and management assistance

• personal ownership

• nationally recognized name

• all of the above

Partnership is the simplest form of business ownership.

• True

• False

Corporation

• A business owned and managed by one person

• A person or company purchases the ability to run a local business under a larger company's brand

• A business owned by two or more people

• A business owned by a group of people

A person or company purchases the ability to run a local business under a larger company's brand

• Joint Venture

• Franchise

• Corporation

• Sole Proprietorship

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