The Business Organization Quiz

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| By Patrickjenkins

Patrickjenkins

Community Contributor

Quizzes Created: 6 | Total Attempts: 6,039

Questions: 5 | Attempts: 512 | Updated: Mar 22, 2023

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This a a quiz on the key terms that was assigned for "The Business Organization"

Questions and Answers

1.

Define what a Vision Statement is:
2.

A written declaration of an organizations core purpose and focus that normally remains unchanged over time.
- A.
  
  Mission Statement
- B.
  
  Financial Statements
- C.
  
  Regulations
- D.
  
  Partnership Agreements
Correct Answer
A. Mission Statement

Explanation
A mission statement is a written declaration that outlines an organization's core purpose and focus. It is a statement that remains unchanged over time and serves as a guiding principle for the organization. It helps to define the organization's goals, values, and overall direction. A mission statement is typically used to communicate the organization's purpose to its stakeholders, including employees, customers, and investors. It helps to align the actions and decisions of the organization with its overall mission and ensures that everyone is working towards a common goal.

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3.

US business organizational structure that provides several non-tax benefits (such as limited liability for the owners and is popular for raising large amounts of investment capital by going public
- A.
  
  C-Corp
- B.
  
  S-Corp
- C.
  
  Limited Liability Company
- D.
  
  Sole Proprietor
Correct Answer
A. C-Corp

Explanation
A C-Corp is the correct answer because it is a US business organizational structure that offers non-tax benefits such as limited liability for owners and the ability to raise large amounts of investment capital by going public. C-Corps are separate legal entities from their owners, which means that owners are not personally liable for the company's debts or legal obligations. Additionally, C-Corps have the advantage of being able to issue different classes of stock, which makes it easier to attract investors and raise capital.

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4.

Sole owner of a business; He or she directs the affairs of the enterprise, bears its risks and losses, and takes the profits and benefits
- A.
  
  Partnership
- B.
  
  Vision
- C.
  
  Sole Proprietor
- D.
  
  Non-Profit Company
Correct Answer
C. Sole Proprietor

Explanation
A sole proprietor is the correct answer because they are the sole owner of a business and have complete control over its operations. They bear all the risks and losses associated with the business, but also have the opportunity to reap all the profits and benefits. This type of business structure is typically suitable for small businesses or individuals who want to have full autonomy and control over their enterprise.

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5.

Type of the US corporation in which the firm's income is passed through its shareholders in proportion of their investment, and taxed at personal income tax rate. This type of corporation can have only one type of stock and only a limited number of stockholders.
- A.
  
  C-Corporation
- B.
  
  Partnerships
- C.
  
  Limited Liability Company
- D.
  
  S-Corporation
Correct Answer
D. S-Corporation

Explanation
An S-Corporation is a type of US corporation where the firm's income is passed through its shareholders in proportion to their investment and taxed at personal income tax rates. This type of corporation can have only one type of stock and a limited number of stockholders. Unlike a C-Corporation, an S-Corporation avoids double taxation as the income is not taxed at the corporate level. Instead, it is taxed only at the individual shareholder level. This structure allows small businesses to benefit from the limited liability protection of a corporation while enjoying the tax advantages of a partnership.

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The Business Organization Quiz

Define what a Vision Statement is:

A written declaration of an organizations core purpose and focus that normally remains unchanged over time.

US business organizational structure that provides several non-tax benefits (such as limited liability for the owners and is popular for raising large amounts of investment capital by going public

Sole owner of a business; He or she directs the affairs of the enterprise, bears its risks and losses, and takes the profits and benefits

Type of the US corporation in which the firm's income is passed through its shareholders in proportion of their investment, and taxed at personal income tax rate. This type of corporation can have only one type of stock and only a limited number of stockholders.