Economics Chapter 7 (activity pages)
What percent of American businesses are sole proprietorships?
75%
Every owner's financial liability is limited to his investment
Corporation
Owners own shares of the business
Corporation
List the four advantages of the partnership form of business ownership
Greater management skills, greater attention of competent employees, greater sources of financing, and an ease of formation and freedom to change
This type claims the fewest number of American business firms
Partnership
What type of corporation is owned by the public and managed by the government?
Public
What is the corporate organizational structure?
Stockholders, Board of Directors, president, senior vice President
What is probably the greatest disadvantage of a partnership?
Total personal financial liability for each partner
Which of the following is not an advantage of the sole proprietorship form of business ownership?
Unlimited financial liability
Which of the following questions is not answered by a general partnership agreement?
What is the degree of financial responsibility each partner with bear?
If the owner dies, the business dies as well
sole proprietorship
Most American business firms are of this type
sole proprietorship
The owner is totally liable for the debts of the firm
sole proprietorship
There is only one owner
sole proprietorship
