Family Business Management - Quiz 2 / Chap. 2

A form of business organization that is authorized to act as a legal entity regardless of the number of owners.

• Corporation

• Partnership

• Sole Proprietorship

• None of the Choices

What is a disadvantage of partnerships?

• Ease of formation

• Limited liability

• Owners share responsibilities

• Possibility of personality conflict

What is the advantage of corporations?

• Minimal government regulation

• Short life span

• Limited liability

• Has one owner

In which type of organization does one person take all the risks?

• Corporation

• Cooperative

• Partnership

• Sole Proprietorship

Nike, IBM, and Google are examples of what type of business?

• Partnership

• Corporation

• Sole Proprietorship

• None of the Choices

A father who wants to take his son into the business with him should form this type of business.

• Sole Proprietorship

• Corporation

• Partnership

• Limited Liability Corporation

How is a general partnership organized?

• Every partner shares equally in both responsibility and liability.

• No partner is responsible for the debts of the partnership beyond his or her investment.

• The doctors, lawyers, or accountants who form a general partnership hire others to run the partnership.

• Only one partner is responsible for the debts of the partnership.

A form of business is owned by one person; the simplest, and the most common form of business organization

• Sole/Single proprietorship

• Cooperatives

• Partnership

• Corporation

A form of business owned by two or more persons. The details of the arrangement between the partners are outlined in a written document called articles of partnership

• Sole/Single Proprietorship

• Cooperatives

• Partnerships

• Corperation

The owners are called stockholders or shareholders

• Sole/Single Proprietorship

• Partnership

• Members

• Corporation