Forms of Business Organization: Business Ethics and Social Responsibility
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Questions and Answers

What is the key feature that distinguishes a corporation from other forms of business organizations?

  • Perpetual existence separate from the owners (correct)
  • Ease of formation
  • Unlimited liability of the owners
  • Diversity of expertise among the owners

    • Which of the following is NOT a commonly cited advantage of a sole proprietorship?

  • Ability to raise large amounts of capital (correct)
  • 100% control by the owner
  • 100% profit goes to the owner
  • Easy and inexpensive to set up

    • What is the key difference between a sole proprietorship and a partnership?

  • Sole proprietorships are not subject to special taxation, while partnerships are
  • Sole proprietorships have a single owner, while partnerships have multiple owners (correct)
  • Sole proprietorships have unlimited liability, while partnerships have limited liability
  • Sole proprietorships are easier and less expensive to set up, while partnerships are more complex

    • Which of the following is NOT a commonly cited advantage of a partnership?

    <p>Limited life</p> Signup and view all the answers

    Which of the following is a common subtype of a sole proprietorship?

    <p>Self-employment</p> Signup and view all the answers

    What is the primary disadvantage of a corporation compared to other forms of business organizations?

    <p>Unlimited liability of the owners</p> Signup and view all the answers

    What is the key characteristic that distinguishes a corporation from other forms of business organizations?

    <p>The business has separate existence from its owners.</p> Signup and view all the answers

    Which of the following is NOT a disadvantage of a cooperative business organization?

    <p>Government support</p> Signup and view all the answers

    What is the key difference between the liability of owners in a sole proprietorship/partnership versus a corporation?

    <p>In a sole proprietorship/partnership, the owners have unlimited liability, while in a corporation the liability is limited to the business resources.</p> Signup and view all the answers

    Which form of business organization is taxed separately from its owners?

    <p>Corporation</p> Signup and view all the answers

    Which of the following is NOT listed as a disadvantage of a cooperative business organization?

    <p>Separate entity</p> Signup and view all the answers

    According to the passage, which of the following is NOT a potential disadvantage of a corporation?

    <p>Inefficient management</p> Signup and view all the answers

    What is the main focus of a Service Business?

    <p>Providing intangible products</p> Signup and view all the answers

    In a Merchandising Business, how does a businessman earn a profit?

    <p>By buying goods at a certain cost and selling at a higher price</p> Signup and view all the answers

    What is the primary characteristic of a Manufacturing Business?

    <p>Converting raw materials into new products</p> Signup and view all the answers

    What is the main distinction of Hybrid Businesses?

    <p>They are a combination of different business types</p> Signup and view all the answers

    What is the key focus of a Sole Proprietorship business?

    <p>Being owned by a single person</p> Signup and view all the answers

    What characterizes a Partnership business?

    <p>Having general or limited partners to share profits and liabilities</p> Signup and view all the answers

    What is one major objective of the lesson on Forms of Business Organization?

    <p>Identify forms of business organizations and their characteristics</p> Signup and view all the answers

    What is one key advantage of a partnership business?

    <p>Diversity of expertise among partners</p> Signup and view all the answers

    Which statement about sole proprietorship is FALSE based on the text?

    <p>Sole proprietors do not have full control of their businesses</p> Signup and view all the answers

    What does the text propose as a group activity to enhance learning about business issues?

    <p>Group research and presentation on a major 21st-century business issue</p> Signup and view all the answers

    Which term describes a business organization that operates in exchange for money?

    <p>Commercial enterprise</p> Signup and view all the answers

    In terms of socio-economic development, how do the forms of business organizations differ according to the text?

    <p>They differ in their purpose and role in socio-economic development</p> Signup and view all the answers

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