True/False
Indicate whether the sentence or statement is true or
false.
|
|
| 1. | In an Investor-Oriented, the
owner supplies or borrows the capital and is responsible for all debts.
|
|
| 2. | Sole Proprietorships as a
business type are more dominant in farming than in any other segment of the economy.
|
|
| 3. | Partnerships are the most
common form of business.
|
|
| 4. | When dealing with a Sole
Proprietorship, profit is technically unlimited, but this is NOT true with a Partnership, where
profit is limited by law.
|
Multiple
Choice
Identify the letter of the choice that best completes the statement or answers the
question.
|
|
| 5. | Which is NOT a positive
characteristic of a Sole Proprietorship? a. | The owner decides the policy of the
business. | b. | The owner has full responsibility for management
decisions. | c. | The owner gets all of the profits. | d. | The owner has to vote each time there is an important management decision to be
made. | | |
|
|
| 6. | The oldest form of business is
the..... a. | Sole Proprietorship | c. | Investor-Oriented
Corporation | b. | Partnership | d. | Cooperative
Corporation | | | | |
|
|
| 7. | Which is NOT a negative
characteristic of a Sole Proprietorship? a. | The owner has to share policy and
management decisions with others. | b. | If the owner needs help, it must be
hired. | c. | The owner has full responsibility for management
decisions. | d. | The owner must supply all of the capital needed to start and operate
the business. | | |
|
|
| 8. | Which is NOT a positive
characteristic of a Partnership as a business type? a. | The owner will not absorb all of the losses, if any. | b. | The owner has full responsibility for all management
decisions. | c. | The owner may only need to contribute a portion of the capital needed
to start and operate the business. | d. | The owner has others to help decide
company policy. | | |
|
Completion
Complete each sentence or statement.
|
| | 9. | In the United States, there are
four basic types of business firms; they are: Sole Proprietorships, _________________,
Investor-Oriented Corporations & Cooperative Corporations.
(make sure your answer is spelled
correctly)
|
| | 10. | Partnerships consist of two or
more people who jointly own, control and operate a business. The responsibilities of each are based
on the ____________ ____________. Normally, this is based on the amount of capital each partner
invests in the business.
(make sure your answer is spelled and spaced correctly)
|