Types of Business Entities Quiz

Organizations involved in various economic activities, like manufacturing, sales, and services, affecting society.

Different legal structures for businesses, varying by country's laws.

A group of individuals with its own assets, separate from owners, established by a shared agreement.

A person involved in commercial activities as their profession, according to national law.

A trader is anyone engaged in activities legally defined as commercial.

A trader is someone who views business activities as their primary profession.

The goal of business organizations—gaining revenue through commercial activities.

Rules regulating the type and structure of businesses in a specific country (varied globally).

A business owned and run by one person with full control but unlimited liability.

The owner of a business is personally responsible for all business debts and obligations; personal assets can be at risk.

A business owned and run by two or more people, who are equally liable for debts.

A partnership where all partners share equal responsibility and have full liability for business debts.

A partnership with some limited liability partners and general partners.

Partners in a limited partnership who are only liable up to their investment.

Partner in a limited partnership who manages the business and has unlimited liability.

A partnership where all partners have limited liability.

The process of forming a business; includes legal filings and organizational setup.

The potential for third parties to hold business owners responsible for debts or obligations.

Obligations of partners towards each other in a business; includes fairness and responsibility.

Process of ending a business operation due to various situations (bankruptcy, owner decision, etc.).

By law, individuals under 18/21 are prohibited from engaging in business transactions.

Legal requirements for notifying government agencies about a new business.

A separate legal entity with limited liability for owners, where ownership isn't publicly traded, and financial statements aren't usually disclosed.

A separate legal entity with limited liability for owners, where shares are publicly traded and financial statements are required to be disclosed.

A business organization that shares features of LLCs and stock companies, but with important legal variations.

Shares of a stock company that are bought and sold on the open market.

The legal concept that separates a company's liability from its owners' personal liability

A legal obligation to act in the best interests of the company and its owners, not for personal gain.

A document that formally establishes a company, including its name, location, purpose, and capital.

A certificate representing one unit of ownership in a stock company.

The requirement for stock companies to publicly report their financial information.

Internal rules of procedure for a company.

Distributions of company profits to its owners (shareholders) in proportion to their ownership.

A company's continued existence unless it is dissolved voluntarily or through legal proceedings.

Documents that report a company's financial performance and position.

How much risk the owners face if the business fails. In limited liability setups, owners' personal assets are protected, while in other structures, owners may be liable for business debts with their personal assets.

A business structure where the business pays tax on its income, and then the owners pay tax again on the profits they receive from the business.

A business structure where taxes are paid at the personal level only. Profits are not taxed at the business level.

How a business is run. It can be centralized with a board or managers, or direct, where all owners participate.

How a business raises money. Corporations have more flexibility in raising funds compared to partnerships or LLCs.

A user of a cooperative who also owns a part of it and has voting rights.

A business mainly or exclusively owned by the state, providing services for public benefit.

Primarily public service and benefiting the country as a whole, although profit maximization may be a secondary goal.

A multinational company with a parent firm in one country and branches/subsidiaries in others.

A multinational company with parent companies in multiple countries, operating through branches and subsidiaries.

The main controlling entity of a multinational enterprise, owning and managing subsidiaries.

A unit of a company that's not separately incorporated, directly under the main company.

An independent person/company authorized to act on behalf of another company.

An office providing information about a company but not authorized to conduct business transactions.

A company owned by a parent company, overseeing and coordinating subsidiary companies.

A company owned by a parent or holding company, but legally incorporated as a separate entity.

A collaboration between individuals or companies in a business project for a longer period.

A business requiring significant investments in assets like machinery and equipment.

A plan on how participants make money from a business, like salaries, dividends, or selling shares.