chapter 2 - Fambus

What is the legal title of a thing or control over things owned?

• Possession

• Ownership

• Management

• Control

Which form of business organization is the simplest and oldest?

• Cooperative

• Sole Proprietorship

• Corporation

• Partnership

What is an advantage of a sole proprietorship?

• Better management

• Limited liability

• More capital available

• Low taxes

What is a disadvantage of a partnership?

• Low capital

• Limited judgment and wisdom

• Personal pride of ownership

• Risk of loss

What is the main characteristic of a corporation?

• Wide scope

• Public operation

• Artificial unit

• Simple organization

What is a type of corporation based on purpose?

• Non-Stock Corporation

• Public Corporation

• Private Corporation

• Stock Corporation

What is a feature of a cooperative?

• Divides profits among members

• Issues stocks

• Provides goods and services at cost

• Owned by shareholders

What is a characteristic of a joint venture?

• Permanent existence

• Specialized business activity

• Trust relationship

• Single member

What is a type of business organization with a trustee managing operations?

• Cooperative

• Business Trust

• Business Syndicate

• Joint Stock Company

What is a disadvantage of a business syndicate?

• Intention to control each other

• Ease of formation

• Control exercised by small group

• Limited liability