Business Organizations Open Notes Assignment

Who typically owns a sole proprietorship?

• A group of investors

• A single individual

• A board of directors

• A partnership

What is a disadvantage of a sole proprietorship?

• Limited liability

• Unlimited liability

• Shared profits

• Complex setup

What is a key characteristic of a partnership?

• Owned by a single person

• Shared responsibility and decision making

• Limited liability

• No legal entity

What is an advantage of a partnership?

• Unlimited liability

• Shared responsibility

• Double taxation

• Complex management

What defines a corporation?

• Owned by a single individual

• Separate legal entity from its owners

• No legal entity

• Unlimited liability

What is a disadvantage of a corporation?

• Double taxation

• Unlimited liability

• No legal entity

• Limited decision-making power

What do stockholders receive if a corporation does well?

• Dividends

• Loans

• Debts

• Penalties

What is a common reason for forming a corporation?

• To avoid taxes

• To limit personal liability

• To have a single owner

• To avoid legal documentation

What is the basic ownership structure in a corporation?

• Shareholders

• Managers

• Employees

• Customers

What is one advantage of corporations regarding stockholders?

• Unlimited liability

• Limited liability

• No liability

• Shared liability