True/False
Indicate whether the sentence or statement is true or
false.
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1.
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In an Investor-Oriented, the owner supplies or borrows the capital and is
responsible for all debts.
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2.
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Sole Proprietorships as a business type are more dominant in farming than in any
other segment of the economy.
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3.
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Partnerships are the most common form of business.
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4.
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When dealing with a Sole Proprietorship, profit is technically unlimited, but
this is NOT true with a Partnership, where profit is limited by law.
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Multiple Choice
Identify the letter of the choice that best
completes the statement or answers the question.
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5.
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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. |
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6.
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The oldest form of business is the.....
a. | Sole Proprietorship | c. | Investor-Oriented Corporation | b. | Partnership | d. | Cooperative Corporation |
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7.
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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. |
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8.
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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. |
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Completion
Complete each sentence or statement.
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9.
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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)
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10.
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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)
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