Forms of Business Organization Quiz

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Questions and Answers

Which type of partner contributes cash and property to a partnership?

  • Managing Partner
  • Industrial Partner
  • Limited Partner (correct)
  • General Partner

What is the main characteristic of a Silent Partner?

  • Participates in the management of the partnership affairs
  • Actively manages the business
  • Does not take active part in the management (correct)
  • Conceals or hides their connection with the partnership

Which type of partner is known to the public as a partner of the business?

  • Dormant Partner
  • Ostensible Partner (correct)
  • Secret Partner
  • Limited Partner

A General Partner's liability extends to which property?

<p>Separate (private) property (D)</p> Signup and view all the answers

What differentiates a Secret Partner from an Ostensible Partner?

<p>Concealed or unknown connection with partnership (C)</p> Signup and view all the answers

What is a Corporation's advantage that allows it to have a wider source of capital?

<p>Owned by shareholders (A)</p> Signup and view all the answers

What is the main advantage of a Sole Proprietorship?

<p>Easy to form with less government requirements (B)</p> Signup and view all the answers

What is a disadvantage of a Partnership?

<p>Limited source of capital (A)</p> Signup and view all the answers

What is the maximum number of individuals that can form a Partnership according to the text?

<p>5 (D)</p> Signup and view all the answers

Which form of business organization may have management dependent on the capacity of the owner?

<p>Sole Proprietorship (D)</p> Signup and view all the answers

What is an advantage of a Partnership?

<p>Sharing the burden (A)</p> Signup and view all the answers

What type of partner contributes capital in cash or property according to the text?

<p>Capitalist Partner (A)</p> Signup and view all the answers

What are the disadvantages of a Limited Liability Corporation?

<p>Requirement for double taxation (A)</p> Signup and view all the answers

Which type of business activity involves buying goods and selling them without changing their form?

<p>Merchandising (C)</p> Signup and view all the answers

What are examples of businesses falling under Service Business?

<p>Beauty parlors and dental clinics (A)</p> Signup and view all the answers

In which type of business activity are goods sold in small quantities?

<p>Retailing (D)</p> Signup and view all the answers

What is a common challenge faced by Limited Liability Corporations according to the text?

<p>Subject to more governmental requirements (B)</p> Signup and view all the answers

Which type of business activity involves the conversion of raw materials into finished goods?

<p>Manufacturing (A)</p> Signup and view all the answers

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