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The American System of Business - Quiz #2

Indicate whether the sentence or statement is true or false.


There are three types of corporations: Investor-Oriented, Cooperative and Partnership.     


If a Partnership fails, you can lose all that you’ve invested plus more.


Since Investor-Oriented Corporations are considered ‘legal entities’, they have the right to own property, provide services, borrow money and enter into contracts.


If the business fails, the stockholder, not the corporation, is liable for all debts.


A corporation enjoys a continuing existence, regardless of the death, entrance or exit of one or more of its owners.


You are guaranteed a share in the profits (however small they may be) everfy year if you invest in a Investor-Oriented Corporation but you’re not guaranteed any profits if you are part of a Partnership.

Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.


In an Investor-Oriented Corporation, management is controlled by
the stock holders.
a Board of Directors.
the owner.
the President of the Company.

Complete each sentence or statement.


Money, equipment, etc. that is used when starting and operating a business is the definition for ___________.
(make sure you spell the answer correctly)



A business owned and controlled by the people who use its services on a non-profit basis is the definition for a _______________.
(make sure your answer is spelled correctly - 1 word answer required)



When dealing with an Investor-Oriented Corporation, _____________ stockholders don’t have voting rights at stockholder’s meetings.
(your one-word answer must be spelled correctly)


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