FORMS OF BUSINESS ORGANIZATIONS

The form of ownership that gives one person sole control over all business decisions is the

• Corporation
• Proprietorship
• Partnership
• Franchise

What is a partnership?

• A business owned and controlled by two or more people
• A business owned and controlled by one person
• A separate legal entity formed by documents filed with a state
• A business owned by shareholders and managed by a board of directors

What is the role of shareholders and board of directors in a corporation?

• Shareholders have no role in a corporation, board of directors handle all business operations
• Shareholders make all the business decisions, board of directors are responsible for day-to-day operations
• Shareholders provide funding for the corporation, board of directors oversee the overall direction of the corporation
• Shareholders are responsible for managing the corporation, board of directors ensure compliance with regulations

Which form of business ownership is the most complex and difficult to form?

• Partnership
• Corporation
• Limited liability company
• Proprietorship

What is a disadvantage of a proprietorship?

• Personal assets are at risk for business debts
• Shared control and decision-making
• Exposure to significant government regulation
• Limited liability protection

What form of business ownership combines the best features of a partnership and a corporation?

• Proprietorship
• Limited liability company
• Corporation
• Partnership

What is the most popular form of ownership for large businesses?

• Cooperative
• Partnership
• Corporation
• Proprietorship

Which form of business ownership offers limited liability to owners?

• Corporation
• Partnership
• Limited liability partnership
• Proprietorship

What are the three major forms of business ownership?

• Sole proprietorship, franchise, and corporation
• Sole proprietorship, partnership, and franchise
• Proprietorship, partnership, and corporation
• Partnership, corporation, and franchise

What is a nonprofit corporation?

• A unique business organized by two or more other businesses to operate for a limited time and for a specific project
• A form of ownership that offers the limited liability of a corporation
• A type of partnership where all partners take part in ownership and operation of the business
• A group of people who join to do some activity that benefits the public