18 Questions
Which type of partner contributes cash and property to a partnership?
Limited Partner
What is the main characteristic of a Silent Partner?
Does not take active part in the management
Which type of partner is known to the public as a partner of the business?
Ostensible Partner
A General Partner's liability extends to which property?
Separate (private) property
What differentiates a Secret Partner from an Ostensible Partner?
Concealed or unknown connection with partnership
What is a Corporation's advantage that allows it to have a wider source of capital?
Owned by shareholders
What is the main advantage of a Sole Proprietorship?
Easy to form with less government requirements
What is a disadvantage of a Partnership?
Limited source of capital
What is the maximum number of individuals that can form a Partnership according to the text?
5
Which form of business organization may have management dependent on the capacity of the owner?
Sole Proprietorship
What is an advantage of a Partnership?
Sharing the burden
What type of partner contributes capital in cash or property according to the text?
Capitalist Partner
What are the disadvantages of a Limited Liability Corporation?
Requirement for double taxation
Which type of business activity involves buying goods and selling them without changing their form?
Merchandising
What are examples of businesses falling under Service Business?
Beauty parlors and dental clinics
In which type of business activity are goods sold in small quantities?
Retailing
What is a common challenge faced by Limited Liability Corporations according to the text?
Subject to more governmental requirements
Which type of business activity involves the conversion of raw materials into finished goods?
Manufacturing
Test your knowledge of forms of business organizations, including sole proprietorship, and understanding the advantages and disadvantages of each form. Explore the different activities that business organizations engage in.
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