Types of Business Organization with Stock Market Key Terms

Question 1

______ is when the owner has no legal separation from the business. Liability resides with the owner(s).

Accepted Answer

Unincorporated

Question 2

_____ is often a small to medium-sized company. The company cannot sell its shares to the general public.

Accepted Answer

Private Limited Company

Question 3

______ is when the business has a unique legal entity separate from the owner. It can be a publicly or privately owned.

Accepted Answer

Incorporated

Question 4

____ is a person or organization who owns shares in a limited (or publicly traded) company.

Accepted Answer

Shareholder

Question 5

____ is a business organization that is owned and controlled by the state or government.

Accepted Answer

Public Corporation

Question 6

____ is a business that is formed by two or more people who usually share responsibility for the day-to-day operations.

Accepted Answer

Partnership

Question 7

____ are investment securities where an investor lends money to a company or a government for a set period of time.

Accepted Answer

Bond

Question 8

_____ is often a large company. The company can sell its shares to the general public.

Accepted Answer

Public Limited Company

Question 9

What are market indexes?

Accepted Answer

Portfolio representing the financial market (Dow Jones, NASDAQ, S&P 500)

Question 10

True or Fales: If an unincorporated business fails, the owner takes on unlimited liability.

Accepted Answer

True

Question 11

____ is a business that is owned and controlled by just one person who takes all of the risks and receives all profits.

Accepted Answer

Sole Trader

Question 12

A dividend is a payment, out of profits, to shareholders as a reward for their investments.

Accepted Answer

True

Question 13

Which is an advantage of being a sole trader.

Accepted Answer

Easy to set up business

Question 14

_______ is when two or more businesses agree to work together on a project.

Accepted Answer

Joint Venture

Question 15

_____ is defined as a non-current asset offered as security against borrowing.

Accepted Answer

Collateral

Question 16

______ is the finance needed when first setting up a business.

Accepted Answer

Start-up capital

Question 17

Which key term is this? The shareholders will lose any amount invested in the company that failed.

Accepted Answer

Limited Liability

Question 18

Which key term is this? If an unincorporated business fails, then the owners are liable to pay the business debt.

Accepted Answer

Unlimited Liability

Question 19

Which of the following is a franchise? (If there are mutliple answers, be sure to click all that applies)

Accepted Answer

Burger King, Taco Bell, KFC

Question 20

True of False: A stock is a payment out of profits to shareholders as a reward for their investment.

Accepted Answer

False

Questions 20