Business Organization Assessment

1. A sole proprietorship can best be defined as…A. one individual in business for him/herselfB. stockholders joined under contractC. one person owning stockD. two individuals owning stock

2. Sole priorships make up 72% of all businesses.This is the …A. least of business organizations in the U.S.B. second greatest form in the U.S. C. majority of business organizations in the U.S.D. All of the above

3. Beauticians, dentists and lawyers are all examples of which type of business organization?A. partnershipB. sole proprietorship C. corporationD. limited partnership

4. A partnership can best be described as…A. business operated by 2 or more peopleB. business operated by 2 or more stockholdersC. business operated by 2 or more other companiesD. business operated by 1 person

5. Partnerships are the ________common business organization in the U.S.A. leastB. mostC. abundantD. none of the above

6. What are the two forms of partnerships?A. General & UnlimitedB. General & LimitlessC. General & Liable D. General & Limited

7. In the following situation who has UNLIMITED LIABILITY?Harold Nodoe, Gloria Poor and Jack Rich owned the Trio Dress Shoppe as a partnership. Under the terms of Their partnership agreement, Nodoe and Poor were entitled each to 40% of the profits, while the remaining 20% went to Rich. Last month the firm collapsed. After selling off everything it owned, the company still owed

its creditors $10,000. Since Nodoe and Poor had no assets of their own, the creditors recovered the total

amount owed to them from Jack Rich’s personal bank account.

A. Harold Nodoe B. Jack Rich C. Gloria Poor D. Mrs. Forbes

8. Which best defines a corporation? A. a business organization recognized as partnership B. a business organization recognized as a sole proprietorship C. a business organization recognized as a separate legal entity D. a business organization recognized as a franchise

9. What is a stock? A. certificate of ownership B. certificate of partnership C. certificate of friendship D. certificate of liability

10. Corporations make up ______ of business organizations (which is the smallest percentage) yet produce ____ of total sales A. 20%, 90% B. 90%, 20% C. 72%, 20% D. 100%, 1%

11. True or False…A corporation can be sued but the people who own the corporation (stockholders) cannot be sued. A. True B. False

12. In the image above compare the board of directors to a group of leaders in KY schools. A. Boards of Directors are like School Teachers B. Boards of Directors are like Students C. Boards of Directors are like Citizens D. Boards of Directors are like School Boards

13. If a company had lonely 200 shares of stock and you bought a share, how much of the company would you own? A. 1/200th B. half C. All of the company D. None of the company, stock ownership doesn’t mean ownership in the company

14. What are the two different forms of stock? A. Common Stock and Limited Stock B. Uncommon Stock and Preferred Stock C. Group Stock and Predetermined Stock D. Common Stock and Preferred Stock

15. Which form of stockholders have voting rights? A. constant stockholders B. limited stockholders C. preferred stockholders D. none of the above

16. All of the following are advantages of a Sole proprietorship except… A. Freedom B. Ease of Formation C. Low Start-up cost D. Unlimited Liability

17. Which of following is an advantage of a general partnership? A. Unlimited liability B. Lack of Continuity C. Larger Money Pool D. Possibility of conflict I. Limited Liability II. Continuity III. Greater likelihood of professional Management IV. Easier Access to Money 18. All of the above are advantages of which business organization? A. Corporations B. Sole Proprietorship C. Partnerships D. None of the above

19. Which is a disadvantage of a sole proprietorship?A. FreedomB. Ease of FormationC. Low Start-up CostD. Difficulty Raising Money

20. The majority “distribution based on annual sales” for partnerships is…A. Less than $25,000B. $1,000,000 or moreC. $50,000 to $99,999D. $25,000 to $49,999