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