Business Organizations

Which of the following is a disadvantage of becoming a sole trader?

• you keep all the profit

• you have unlimited liability

• you have full control over your business

• the business is easy to set up

What does the word “limited” after a business name indicate?

• the number of owners is limited

• there is a limit to the number of loans that can be issued

• the owners’ liability for the debts of the business is limited

• there is a limit to the number of businesses of this type

Which best describes the term “limited liability”?

• the owner is responsible for all the debts of the business

• the owner is only responsible for the assets of the business

• the owner is only liable for the money they have invested in the business

• the owner in only liable for the taxes that are paid by the business

What kind of business is BEST described by these statements? "I am the only owner of my business. I take all the risks of doing business. I keep all the profits"

• Partnership

• Sole proprietorship

• Corporation

• Cooperation

Which of the following is a disadvantage of a partnership?

• increased capital or equity

• increased workload

• increased knowledge

• increased arguments

An entrepreneur:

• Manages financial investments

• Sets the interest rates at banks

• Enforces government regulations

• Takes the risk to earn profit

Public limited companies and private limited companies mean that they are ___________ ownership and ______________ liability.

• Public, unlimited

• Public, limited

• Private, limited

• Private, unlimited

Business correspondence means the exchange of information in a written format for the process of business activities.

• TRUE

• FALSE

The correspondence between the individuals, departments, or branches of the same organization.

• External Correspondence

• Internal Correspondence

• memo

• email