Business ownership
It is important for business owners to weigh the advantages and disadvantages of each ownership structure because:
a. there is an established procedure for determining the best form of ownership.
b. individual goals and needs differ, which makes each business situation unique.
c. the nature of the business and its financial needs always change over time.
d. most business owners already understand how each form of ownership works.
b. individual goals and needs differ, which makes each business situation unique.
The best way to reduce the disagreements that often occur when two people go into business together is to develop a(n):
a. operating permit.
b. state charter.
c. partnership agreement.
d. DBA document.
c. partnership agreement.
What is cooperative?
a jointly owned business operated by members for their mutual benefit
Two local business owners want to collaborate their products. This is an example of a:
a. franchise.
b. merger.
c. monopoly.
d. joint venture.
b. joint venture
Mention the four sector in economic
primary, secondary, tertiary, and quatenary
Which of the following is an advantage of sole proprietorships:
a. Limited liability
b. Dual taxation
c. Unlimited financial power
d. Quick decision-making
d. Quick decision-making
Which of the following is an advantage of the corporation as a form of business ownership:
a. Less complex requirements
b. Tax advantages
c. Separate owners and managers
d. Limited liability
d. Limited liability
Mention one characteristic of cooperative
all members can contribute running the business
all members have vote
profit are shared equal to the members.
A business owner who prefers to maintain complete control of all business activities might consider structuring their venture as a(n):
a. sole proprietorship.
b. cooperative
c. general partnership.
d. limited liability company.
a. sole proprietorship.
Mention two examples of primary sector
farmer, breeder, mining, etc
Which of the following is a disadvantage of sole proprietorships:
a. Limited capital
b. Privacy
c. Control
d. Flexibility
a. Limited capital
Which of the following is a disadvantage of corporations:
a. More taxes
b. Unlimited life
c. Reduced financial power
d. Unlimited liability
a. More taxes
Which of the following forms of business ownership has the most potential for financial power:
a. Sole proprietorship
b. Social enterprise
c. General partnership
d. Limited liability company
limited liability company
Jackie needs to raise a large amount of capital to open additional restaurants. She wants to limit her personal liability. She should consider establishing her business as a:
a. private limited company
b. partnership
c. limited liability company
d. sole proprietorship.
c. limited liability company
What is the secondary sector doing?
manufacture and process products from raw material, becoming unfinished-good or finished goods
Which of the following is an advantage of general partnerships:
a. Limited capital
b. Easy to end
c. Unlimited liability
d. Combined capabilities
d. Combined capabilities
An advantage in forming a business as a hybrid (e.g., LLC, LLP) is that the:
a. owners and managers operate separately.
b. structure offers members a great deal of flexibility.
c. members experience unlimited liability.
d. structure has an unlimited life span.
b. structure offers members a great deal of flexibility.
Mention two advantages of being cooperative
buying bulk
working together
good motivation
Where Public Limited Companies get their capital?
a. Share of all members
b. Share from the limited shareholder
c. Share from open market
d. Share of the owner
c. Share from open market
What types of business activities that include in tertiary sector
Trading and service
Which of the following is a disadvantage of general partnerships:
a. Increased capital
b. Difficulty in ending
c. Decreased competition
d. Reduced expenses
b. Difficulty in ending
What would be the disadvantage when solo trader changes into partnership
will lose decision making independence
Mention two disadvantages of cooperative
poor management skills
capital shortages
slow decision-making
What is mean by limited liability
When there is the separation between onwer's asset and the company asset
When a country did deindustrialisation, what sector that be focus on?
Tertiary