Question

a. sole proprietorship b. oligopoly c. monopoly d. franchise
which answer does not belong? (21 - 25)

1. stockholders:

a. receive interest on the amount of money that was borrowed b. own corporations
c. may receive dividends d. have limited liability

1. three most common types of business organizations:

a. sole proprietorships b. partnerships c. not - for - profit organizations
c. corporations

1. corporations:

a. may be either publically owned or closed.
b. account for around 90% of total sales in the nation.
c. are treated by law as if they were individual persons
d. are the most common form of business organizations in the nation

1. nonprofit organizations are all of the following except:

a. taxed heavily by the government
b. put all profits back into the organization
c. do not seek profits for distribution to individual members
d. earn revenues from the sale of products, from fees for services, or charitable contributions

1. general partners:

a. enjoy equal decision - making authority
b. have unlimited liability
c. rarely take an active role in the business
d. usually formulate a partnership contract.

Explanation:

21.

Stockholders own corporations (B), may receive dividends (C), and have limited liability (D). Creditors receive interest on borrowed money, not stockholders.

22.

Sole proprietorships (A), partnerships (B), and corporations (C) are common business organizations. Non - profit organizations (C in this question) are a different category.

23.

Corporations may be publicly or closely held (A), are legal entities (C), and while significant, sole proprietorships are more common than corporations in number (D is incorrect).

24.

Non - profit organizations are tax - exempt (A is incorrect), reinvest profits (B), don’t distribute profits (C), and earn revenues (D).

25.

General partners have equal decision - making (A), unlimited liability (B), take active roles (C is incorrect), and formulate partnership contracts (D).

Answer:

1. A. receive interest on the amount of money that was borrowed
2. C. not - for - profit organizations
3. D. are the most common form of business organizations in the nation
4. A. taxed heavily by the government
5. C. rarely take an active role in the business