9/17/23, 9:14 PM Type of Business organizations

NAME :

CLASS :
Type of Business organizations
DATE :
27 Questions

1. This type of business is owned by one person.

A Sole Proprietorship B Franchise

C Corporation D Partnership

2. This type of business is owned by one person.

A Partnership B Franchise

C Sole Proprietorship D Corporation

3. Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

A Franchise B Corporation

C Sole Proprietorship D Partnership

4. What is a major advantage of a business that is a partnership rather than a sole proprietorship?

A The business is easy to sell B The responsibility for the business is shared

C The partners are not responsible for business debts D The business is easy to set up

5. What is a business owned by stockholders/investors but operated by others?

A Corporation B Partnership

C Sole Proprietorship

6. What is ONE advantage of a sole proprietorship?

A You make ALL the decisions B You have to share profits

C Easy to raise money

https://quizizz.com/print/quiz/65071038469e1393371c090f 1/4
9/17/23, 9:14 PM Type of Business organizations

7. Which is ONE disadvantage of Sole Proprietorship?

A Disagreements B Hard to raise money

C Less direct control

8. What is ONE advantage of a Corporation?

A Difficult to start B Make all of the decisions

C Easy to raise money!

9. Disadvantages include limited life and

the potential for conflict between partners

A Sole Propriotorship B Partnership

C Corporation

10. Characteristics include owned by two or more people and may be general or limited

A Sole Propriotorship B Corporation

C Partnership

11. Advantages include limited liability for owners, unlimited life, and ease of transfer of ownership.

A Partnership B Corporation

C Sole Propriotorship

12. What is a disadvantage of partnerships?

A possibility of personality conflict B owners share responsibilities

C limited liability D ease of formation

13. Sara’s Hair Palace is a small, locally owned beauty salon in Sterling. This represents what type of business?

A corporation B sole proprietorship

C partnership

14. Sara’s Hair Palace is a small, locally owned beauty salon in Sterling. This represents what type of business?

A partnership B sole proprietorship

C corporation

https://quizizz.com/print/quiz/65071038469e1393371c090f 2/4
9/17/23, 9:14 PM Type of Business organizations

15. Susie is starting her own lemonade store. What economic term would best describe Susie and what does that term
mean?

A Partnership – partner in the lemonade stand B Consumer – a person who uses or consumes goods

Entrepreneur- - person who takes a risk to start a new

C
company

16. Susie is starting her own lemonade store. What economic term would best describe Susie and what does that term
mean?

A Partnership – partner in the lemonade stand B Consumer – a person who uses or consumes goods

Entrepreneur- - person who takes a risk to start a new

C
company

17. Dan has $5,000. He wants to invest his money in the type of business that has the least amount of liability. In which
type of business should he invest?

A proprietorship B corporation

C partnership

18. A business partnership has ___________ who share the risks and the profits.

A No more than three owners B One owner

C Two or more owners D Five or more owners

19. In which of the following would one person be responsible for all of the risks but also receive all of the profits?

A Propreitership B Partnership

C Dual owner business D Corporation

20. What do we call a person who is willing to take the risks of starting a business in order to make a profit?

A Proprieter B Partner

C Incorporater D Entrepreneur

21. Which of the following is an advantage of sole proprietorships:

A Quick decision making B Limited liability

C Dual taxation D Unlimited financial power

22. Two local business owners want to reduce competition, so they decide to form one organization from the two
companies. This is an example of a

A trading bloc. B monopoly.

C merger. D hostile takeover.

https://quizizz.com/print/quiz/65071038469e1393371c090f 3/4
9/17/23, 9:14 PM Type of Business organizations

23. What is a company called that sells stock to raise money?

A Partnership B Corporation

C Limited Partnership D Sole Proprietorship

24. Why would a company need to issue stock?

A To raise money. B To increase its' customer base.

C To stop the government from regulating it. D To show customers that it's successful.

25. Which of the following might upset the board of directors in a corporation?

A if the company's stocks increase in value B if the company's stocks are sold on an exchange

C If the company's stocks are bought on an exchange D if the company's stocks lose value

26. Bob and Tom own a restaurant together. They share equal responsibility and each receive 50% of the profits. What
kind of business organization is this?

A Sole Proprietorship B Cooperative

C Limited Liability Corporation D General Partnership

27. Some businesses are not organized to maximize profits. Instead their goals are to work for the good of all their
members or to work for the good of society. This describes

A horizontal and vertical mergers B cooperatives and nonprofits

C franchises and multinationals D general and limited partnerships

https://quizizz.com/print/quiz/65071038469e1393371c090f 4/4