Download Unit 4 Review- Business Organizations

Unit 4 Review- Business Organizations
1. What term is defined as an enterprise that produces good or services, usually to make a
profit? Business organization
2. A business that does not continue if the owner leaves limited life
3. What do many people consider to be the chief advantage of sole proprietorship? The
owner keeps all the profits
4. What is a business owned and managed by a single person called? Sole proprietorship
5. What is the term for a business that is co-owned by two or more people who agree on
how responsibilities, profits and losses will be divided? Partnership
6. What is the term for a business in which non of the co-workers is responsible for the
debts or mistakes of the others? Limited liability partnership
7. What is the advantage of partnership but not of sole proprietorship? Specialization of
skills
8. What is the disadvantage of partnership but not of sole proprietorship? Potential for
conflict
9. What is the name for an individual who owns a share of a corporation and is entitled to
part of its profits? Stockholder
10. _______ is a corporation that issues stock that can be freely bought and sold? Public
corporation
11. What is one of the major disadvantages of corporations? Loss of control
12. What is it called when companies that produce the same product merge? Horizontal
merger
13. What is the name for a contract in which a corporation promises to repay borrowed
money, plus interest, on a fixed schedule? Bond
14. Angela opens a coffee shop, which she owns and where she sells a national brand of
gourmet coffee. She pays licensing fees to do this. What kind of business is it? Franchise
15. The owner has total responsibility for all business decisions and financial obligation is an
advantage, disadvantage or both of sole proprietorships? Both
16. A dry cleaning business is most likely to be a _____? Sole proprietorship
17. Obtaining a ______ is typical startup requirement for a sole proprietorship? Business
license
18. One partner is a bookkeeper, and the other is a gourmet chef. This is an example of ____
in partnership? Specialization
19. Three certified public accountants form an accounting firm by pooling their investment
money. No one wants to be responsible if one of the others makes a serious financial
error. What type of firm will they choose? Limited liability partnership
20. What is the part of the corporate profits paid to a stockholder? Dividend
21. Unlimited life and limited liability are advantages that _____ have over sole
proprietorships and partnerships. Corporations
22. Who is responsible for the smooth day-to-day running of a corporation? Corporate
officers
Unit 4 Review- Business Organizations
23. What is it called when several companies producing unrelated products merge?
Conglomerate
24. A shirt factory acquires a button manufacturer. This is an example of a _______.
Vertical merger
25. A restaurant that is part of a national chain is an example of a ____. Franchise
26. If a firm has no employees, what form of business organization is it most likely to have?
Sole proprietorship
27. A business owned by shareholders, who own the rights to the company’s profits but face
limited liability. Corporation
28. The result of a merger of several companies, each one producing unrelated goods or
services conglomerate
29. Shares of ownership in a corporation stocks
30. The combining of two or more companies that produce the same product of similar
products horizontal merger
31. A large corporation with branches in several countries multinational corporation
32. Part of a corporation’s profits that is paid out to stockholders dividend
33. The combining of companies involved in different steps of producing or marketing a
product. Vertical merger
34. A corporation that issues stock that can be freely bought and sold. Public company
35. A contract issues by a corporation that promises to replay borrowed money, plus interest,
on a fixed schedule. Bond
36. A corporation that controls who can buy or sell their stock private company
37. Which of the following are characteristics of sole proprietorship? Limited life and
limited liability
38. What financial difficulty do people often face when opening a sole proprietorship?
Limited funds for startup
39. A dog grooming service is most likely to be a _____. Sole proprietorship
40. What often happens when the owner of a sole proprietorship dies? The business closes
down
41. A business in which the partners share management and liabilities is a ___? General
partnership
42. A doctor’s office is mostl likely to be a _____ partnership? Limited liability
43. What are some of the advantages that partners can bring to a business? Extra funds and
specialized knowledge
44. A service stat