Business Structures Quiz

People who buy stock in a company are known as [______________________]

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sole proprietorships.
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a corporate charter
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Sole proprietorships require one person to do many things, while partnerships require many people to weigh in on decisions.
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-shareholders

How do corporations raise money and resources to expand?

The main advantage that corporations have is

Franchising is typically done by

A disadvantage of corporations is that shareholders have to pay [____________] on profits.

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Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.
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-taxes
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are fully responsible for their partners' losses.
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run the business by electing a board of directors, who then hire the company's leaders.make business decisions on the advice of a board of directors, a president, and other leaders. make business decisions on the advice of a board of directors, who follow the expertise of leaders.

The most common business organizations in the United States are

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They agree to sell stocks.
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-independent workers-tax preparers-freelance writers
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Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.
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sole proprietorships.

Which document determines the number of shares a company can sell?

Which are examples of sole proprietorships? Check all that apply.

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are fully responsible for their partners' losses.
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-independent workers-tax preparers-freelance writers
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Preferred stock allows shareholders to vote for a board of directors, while shareholders of common stock do not have voting rights._Common stock gives shareholders one vote per share owned, while shareholders of preferred stock do not have voting rights.
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limiting liability for owners and stockholders.

A disadvantage of forming a partnership is that owners

Based on the chart, the primary responsibility of shareholders is to

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Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.
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-independent workers-tax preparers-freelance writers
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run the business by electing a board of directors, who then hire the company's leaders.make business decisions on the advice of a board of directors, a president, and other leaders. make business decisions on the advice of a board of directors, who follow the expertise of leaders.
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Preferred stock allows shareholders to vote for a board of directors, while shareholders of common stock do not have voting rights._Common stock gives shareholders one vote per share owned, while shareholders of preferred stock do not have voting rights.