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