Business Organizations

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Question 1

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The three basic forms of business organizations are limited partnerships, S corporations, and limited liability companies.

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Question 2

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Family-owned and family-operated businesses are common examples of publicly held organizations.

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Question 3

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Corporate form of organizations enables shareholders to transfer their ownership without interfering with the organization's management.

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Question 4

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Usually, the cost of creation of a business entity is not a major factor in considering which form of operation to choose.

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Question 5

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Factor continuity refers to the legal steps necessary to form a particular business organization.

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Question 6

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A dissolution is any change in the ownership of an organization that changes the legal existence of the organization.

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Question 7

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The failure to consider how to overcome disputes involving managerial control can cause business activities to suffer and the organization to fail.

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Question 8

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Although expensive to create, the use of sole proprietorships is becoming all the more common.

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Question 9

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A business might shift away from the proprietorship form as it becomes more successful.

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Question 10

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One of the advantages for a proprietor is that he may transfer the ownership of his proprietorship whenever desired.

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Question 11

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A sole proprietor has limited liability for the obligations of the proprietorship.

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Question 12

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A sole proprietorship is not taxed as an organization.

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Question 13

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Whenever two or more people wish to own a business together, a joint venture is a possible organizational form.

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Question 14

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Partnership is the most easily formed business organization compared to all others.

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Question 15

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The creation of a partnership requires permission from each state in which it does business.

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Question 16

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A common interest in business is one of the satisfying definitional elements of partnership existence.

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Question 17

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A dissolution essentially terminates the business of a partnership.

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Question 18

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All partners in a general partnership have unlimited liability for their organization's debts.

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Question 19

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Shareholders elect the officers of a corporation.

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Question 20

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A limited partnership is solely made up of limited partners.

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