Forms of Business Organization: Business Ethics and Social Responsibility

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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?

Limited life (A) Signup and view all the answers

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

Self-employment (B) Signup and view all the answers

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

Unlimited liability of the owners (D) Signup and view all the answers

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

The business has separate existence from its owners. (B) Signup and view all the answers

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

Government support (D) Signup and view all the answers

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

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

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

Corporation (B) Signup and view all the answers

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

Separate entity (D) Signup and view all the answers

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

Inefficient management (B) Signup and view all the answers

What is the main focus of a Service Business?

Providing intangible products (A) Signup and view all the answers

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

By buying goods at a certain cost and selling at a higher price (C) Signup and view all the answers

What is the primary characteristic of a Manufacturing Business?

Converting raw materials into new products (A) Signup and view all the answers

What is the main distinction of Hybrid Businesses?

They are a combination of different business types (C) Signup and view all the answers

What is the key focus of a Sole Proprietorship business?

Being owned by a single person (B) Signup and view all the answers

What characterizes a Partnership business?

Having general or limited partners to share profits and liabilities (D) Signup and view all the answers

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

Identify forms of business organizations and their characteristics (A) Signup and view all the answers

What is one key advantage of a partnership business?

Diversity of expertise among partners (C) Signup and view all the answers

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

Sole proprietors do not have full control of their businesses (D) Signup and view all the answers

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

Group research and presentation on a major 21st-century business issue (D) Signup and view all the answers

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

Commercial enterprise (A) Signup and view all the answers

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

They differ in their purpose and role in socio-economic development (C) Signup and view all the answers