Unit # 4 Business organization

What is a sole proprietorship?

• A business owned by two or more people

• A business owned and managed by a single individual

• A business owned by the government

• A business owned by a corporation

Fill in the blank: Sole proprietorships have relatively few ______.

• regulations

• employees

• customers

• locations

Fill in the blank: In a sole proprietorship, the owner is the sole receiver of ______.

• profit

• losses

• taxes

• debts

Fill in the blank: In a sole proprietorship, there is ______ ownership.

• single

• multiple

• shared

• corporate

Fill in the blank: One disadvantage of sole proprietorships is ________, meaning the owner is legally bound to pay all business debts.

• Unlimited Personal Liability

• Limited Liability Protection

• Double Taxation

• Shared Ownership

How many people own a partnership?

• One

• Two or more

• Only three

• Unlimited

A partnership in business is:

• A business owned and operated by one person

• A business owned by shareholders

• A business owned and managed by two or more people sharing profits and losses

• A government-owned organization

Which of the following is an advantage of partnerships?

• A) Shared decision making and specialization

• B) Unlimited liability

• C) Single ownership

• D) Limited skills

Which of the following is a disadvantage of partnerships?

• A) Partners are only responsible for their own actions

• B) Partners are bound by each other's actions

• C) Partners have no liability

• D) There is no potential for conflict

What is a corporation? Fill in the blank: A corporation is a business that is a ________ (it exists on its own with rights like a person) owned by individual stockholders.

• legal entity

• government agency

• sole proprietorship

• partnership