Types of Business Organizations

Question 1

A group of city leaders decide to raise funds for a museum. What type of organization is this?

Accepted Answer

a nonprofit organization

Question 2

What type of organization is a credit union?

Accepted Answer

service cooperative

Question 3

Which business is most likely to be a limited liability partnership

Accepted Answer

a doctor's office

Question 4

Shares of ownership in a corporation

Accepted Answer

stock

Question 5

An individual who owns a share of a corporation and is entitled to part of its profits.

Accepted Answer

stockholder

Question 6

A corporation that issues stock that can be freely bought and sold

Accepted Answer

public company

Question 7

The result of a merger of several companies, each one producing unrelated goods or services

Accepted Answer

conglomerate

Question 8

Doctor's offices often run as limited liability partnerships because

Accepted Answer

if one doctor loses a malpractice suit, the others are safe

Question 9

What is one of the biggest disadvantages of partnership

Accepted Answer

potential for conflict between partners

Question 10

What financial difficulty do people often face when opening a sole proprietorship

Accepted Answer

limited funds for startup

Question 11

A large corporation with several branches in several countries

Accepted Answer

multinational corporation

Question 12

Which of the following is an advantage of a partnership but not of sole proprietorship?

Accepted Answer

specialization of skills

Question 13

What is a typical requirement of a consumer cooperative?

Accepted Answer

paying a membership fee

Question 14

Which of the following are characteristics of sole proprietorships

Accepted Answer

limited life and unlimited liability

Question 15

Which of the following is a major advantage of owning a franchise?

Accepted Answer

selling a product that consumers know

Questions 15