1.4 Entrepreneurship & Business Ownership

Only corporations can raise money by issuing and selling stocks.

• True

• False

Sole proprietors and partners have limited liability. 

• True

• False

What are the three main types of business organizations?

• Sole proprietorship, stock market, partnership

• Stock, Shareholder, corporation

• Sole proprietorship, partnership, corporation

Which of the following is true about small businesses?

• They account for half the employment in the United States

• Usually are able to offer competitive salaries and benefits.

• Benefit from owners with proven experience.

What is a corporation?

• A group of firms that produce similar products.

• A business owned by one person.

• A form of business legally separate from its owners.

What is a sole proprietorship?

• A business owned by two or more people.

• A business owned and operated by one person.

• A form of business legally separate from its owners.

What is an Industry?

• A group of firms that produce similar products.

• A business owned and operated by one person.

• A fraction of ownership in a corporation.

What is a partnership?

• A business legally separate from its owners.

• A business owned by two or more people.

• A person directly affected by a business.

What is a shareholder?

• Any person that works for a business.

• A business owned by two or more people.

• People who own part of a public company through stock.

What is a Stock?

• A fraction of ownership in a corporation.

• A company with two or more owners.

• A form of business that is owned by a law firm.