Forms of Business Organization

In which form of business organization does the owner have full control and liability?

• Partnership

• Sole Proprietorship

• cooperative

• Franchise

A cooperative business is owned and operated by:

• Members

• Suppliers

• Shareholders

• Investors

In a limited liability company (LLC), the owners are called:

• Members

• Partners

• Directors

• Shareholders

A partnership is defined as a business owned by:

• Shareholders

• Members of a board of directors

• One person

• Two or more individuals

Which of the following is a disadvantage of a sole proprietorship?

• Ease of formation

• Difficulty raising capital

• Owner keeps all the profit

• Decision making is speedy and easily implemented

Describe the characteristics of a sole proprietor.

Explain what a partnership agreement is and why it is important to the partners?

In a general partnership, all partners have ________ authority over business decision making and profit.

In a corporation, the owners are commonly referred to as __________.

A ________ is a separate legal entity from its owners.