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Types of Business Organizations Flashcards | StudBud
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Types of Business Organizations
Types of Business Organizations
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1
A corporation is a business that is______.
Owned by one person
Organized to provide a service without making a profit
Owned by two or more individuals.
Owned by stockholders and run by a CEO
2
Which is an advantage of a corporation?
Must obtain corporate charter to start
They are taxed on profits
Close government regulation
Limited liability
3
IBM, Google and Nike are examples of _______.
Partnership
Sole Proprietorship
Corporation
Franchise
4
Which is true about corporations?
They can make money by selling stock
Partnership agreements are needed to start one
They have unlimited liability
All of the above
5
In this type of business, the owners do not have unlimited liability.
Partnership
Corporation
Franchise
Sole Proprietorship
6
This type of business is the simplest and easiest to start.
Partnership
Corporation
Franchise
Sole Proprietorship
7
A disadvantage of a sole proprietorship is ___.
Owner doesn't keep any of the profits
All of the above
It can be hard to obtain capital
Limited Liability
8
Which has the most risks and rewards for the owner?
Partnership
Sole Proprietorship
Corporation
Franchise
9
A business owned by one person is a ____.
Partnership
Sole Proprietorship
Franchise
Corporation
10
What is a financial difficulty a person might face when starting a sole proprietorship
?
High salary for company president
Paying shareholders profits
Limited funds for startup
Many government fees
11
Taco Bell, Subway, McDonald’s and Chick-Fil-A are examples of a ____________.
Partnership
Sole Proprietorship
Corporation
Franchise
12
Owner is responsible for all company debts & can lose everything as a result of a bad decision.
Unlimited liability
General liability
Limited liability
Dual liability
13
A stockholder is______
Partner in a general partnership
sole proprietor
same as a franchise owner
Owner of a corporation
14
____ is a company that has facilities in a location other than its home country.
Multinational corporation
Corporation
Franchise
Partnership
15
Which of the following is the most difficult to start?
Sole Proprietorship
Franchise
Partnership
Corporation
16
An individual who owns a share of stock in a corporation is a ___.
Stockholder
Director
Officer
Vice President
17
Which is a major advantage of owning a franchise?
Having complete control over a product
Selling a product that consumers are already familiar with
Being limited in what can be sold
Being free from all oversight
18
Document stating the major parts of a company (i.e. objectives, structure &planned operations).
Corporate charter
Partnership agreement
Franchise agreement
19
What is an advantage of a sole proprietorship?
Easy to start
Bank loans
Expertise/specialization
Government regulation
20
Selling stock is a way to bring in money for this type of business.
Corporation
Sole proprietorship
Partnership
Franchise
21
A _____has facilities and other assets in at least one other country than its home country.
Dual corporation
General partnership
Marketing franchise
Multi-national corporation
22
Which is a disadvantage of a partnership?
Partners share risk
Unlimited liability
Easy to start
Easier to obtain capital
23
How many people do you need to start a partnership?
2
3
1
4
24
A ________owned by many people but treated by law as one person.
Franchise
Corporation
Partnership
Sole Proprietorship
25
This type of business means the owner (or owners) have unlimited liability.
Corporation
Partnership
Sole proprietorship
Sole proprietorship & partnership
26
Which is one of the biggest disadvantages of a partnership?
More government involvement
Potential for conflict between partners
Easy to start
Decreased resources
27
Which business organization has limited financial resources?
Corporation
Franchise
Partnership
Sole Proprietorship
28
Contains the major components of a company such as its objectives, structure and its planned operations.
Partnership agreement
Franchise agreement
Corporate agreement
Corporate charter
29
Which is NOT a type of business organization
?
Entrepreneurship
Partnership
Corporation
Sole Proprietorship
30
The owner keeps all the profits in a ___.
Sole Proprietorship
Partnership
Corporation
Franchise
31
A legal, binding contract between the parent company and the person who wants to sell their products.
Corporate charter
Liability papers
Franchise agreement
Partnership agreement
32
The franchisor is also known as the
Seller
Parent company
Franchisee
33
_
is owned by person who agrees to sell a company's product in a specific geographical area.
Partnership
Sole Proprietorship
Corporation
Franchise
34
Stockholders can only lose what they have invested.
Unlimited liability
Limited liability
Corporate liability
General liability
35
Advantages of franchises include
______.
Easy to start
All of the above
They can get guidance from the parent company.
They can rely on the expertise of the parent company
36
Document establishing the terms of the arrangement between the parties involved.
Corporate charter
Liability agreement
Partnership agreement
Franchise agreement
37
This business type is closely regulated by the government.
Partnership
Corporation
Sole proprietorship
Franchise
