Exam 6: Forms of Business Ownership

Kris and Amy own a workout facility in which they are co-owners. Both take an active role in the management of the business and each accepts unlimited liability. Kris and Amy operate as a ________.

When establishing a sole proprietorship, it may be necessary to obtain local licensing or permits.

Which of the following statements BEST describes the distinction between a not-for-profit corporation and a for-profit corporation?

Policies regarding all of the following points should be included in a partnership agreement EXCEPT ________.

A disadvantage of corporations is that they generally require extensive paperwork.

All of the following are reasons business owners consider using a corporation structure of ownership EXCEPT ________.

The following are characteristics shared by both for-profit and not-for-profit corporations EXCEPT ________.

Nick is investing $25,000 in a partnership with his sister and brother. Nick does not want to be an active part of the partnership and can only afford to risk the $25,000 he is investing. His brother and sister agree to let him share a proportionate amount of the profits. Nick is a ________ in this partnership.