| A | B |
|---|
| Business which operates similar to a partnership but has limited liability | limited liability company |
| business owned by two or more persons who share profits or losses | partnership |
| business that operates without competition but is regulated by the government | controlled monopoly |
| business owned by one person | nonprofit corporation |
| business in which is an administrative unit of the U.S. Government | federal agency |
| business that has permission from a parent to company to sell its product or service | franchisee |
| business made up of many owners but authorized by law to act as a single person | corporation |
| corporation that sells stock on the open market | public corporation |
| Which of the following is an example of a nonprofit corporation? | all of the above |
| Which of the following business organizations has perpetual life? | corporation |
| A major disadvantage of a partnership is | peronality conflicts among the partners |
| A business organization that does not have legal agreement is the | sole propietorship |
| A legal agreement that is strongly recommended but is not required is the | partnership agreement |
| Unlimited liability means | the owner must pay the debts of the business even if it means losing his or her home, car, or bank account |
| Limited liability companies have pass-through taxation, which means that the company | is not taxed |
| A corporation is managed by its | board of directors |
| The owners are called members in | limited liability companies |
| Whcih financial statement answers the question How much is this business worth? | balance sheet |
| Property, furniture, and fixtures are considered | fixed assets |
| The amount of capital invested in the business plus any earnings retained by the business is known as | owners's equity |
| A statement of income shows | sales and expenses |
| Besides the business owner, what other people need to examine a company's financial statements? | both b and c |
| Assets equal | liabilities plus owner's equity |
| A 30-year mortgage loan would be considered a | long-term liability |
| Another name for owner's equity is | net worth |
