Business Organization Types Quiz

A business owned and run by one person.

A business owned and run by two or more people.

A business that's legally separate from its owners.

A business structure combining elements of a partnership and a corporation.

A business that aims to benefit society rather than generate profit.

A business owned by one person.

The owner manages all aspects of the business.

No state registration is required.

The sole proprietor.

A business owned and run by only one person.

A business structure where the owner and the business are not legally separate. The owner is responsible for all the business's debts and obligations.

Legally registering a business name to avoid confusion with other businesses and comply with state laws.

A unique nine-digit number assigned by the IRS to identify a business for tax purposes.

Required business documents from state, county, and municipal levels.

Taxes due to federal, state, county, and local governments.

Sole proprietors keep all the profits and decide independently, with flexible duration and termination options.

The owner of the business keeps all the profits.

The ability to discontinue the business at any time.

In a sole proprietorship, the owner is solely responsible for making all business decisions, big or small.

As a sole proprietor, you are personally responsible for all debts and legal obligations of the business.

Money owed by the business to others, such as suppliers or lenders.

Being legally responsible for any harm or damages caused by the business.

Sole proprietorships can struggle to attract and retain top-quality employees due to limited resources and control.

Two or more people who operate a business together, sharing profits equally.

A legal agreement outlines the rights and responsibilities of each partner, preventing future disagreements.

A legal document outlining the terms of a partnership, covering responsibilities, profit sharing, and dispute resolution.

Choosing a business name that represents the partnership and its goals.

It helps identify and differentiate the partnership from others, creating a unique identity.

The process of officially notifying the government about the existence of a partnership.

Partnerships don't pay income tax directly, but each partner reports their share of the profits and losses on their individual income tax returns.

Permission to operate a business granted by local or state authorities, necessary for specific businesses.

A written document outlining how partners will handle various business situations, including ownership, roles, responsibilities, and profit/loss division.

The legal agreement specifies each partner's rights, responsibilities, and designated title within the business.

The agreement outlines how profits and losses generated by the partnership will be divided amongst the partners.

The legal agreement includes procedures for handling disagreements or conflicts that may arise between partners.

The agreement outlines procedures for adding or removing partners, including transitioning ownership if a partner dies.

A partnership where all partners share in the business's profits and losses, and each partner is personally liable for all debts and obligations.

A partnership with two types of partners: general partners (manage the business and are fully liable) and limited partners (invest and have limited liability).

A partnership where partners have limited personal liability for the business's debts and obligations, protecting their personal assets.

Partnerships have specific rules and procedures for adding or removing partners, which are usually outlined in the partnership agreement.

When a partner dies, the partnership agreement usually outlines how the deceased partner's interest in the business will be handled, such as selling their share or continuing the business with the remaining partners.

In a general partnership, all partners are equally responsible for all debts, obligations, and legal issues of the business.

General partnerships are straightforward to set up and can be dissolved without complex procedures.

A general partnership automatically dissolves if a partner dies, goes bankrupt, or leaves the partnership.