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NEW QUESTION: 1
There are many different types of organizations that people create to accomplish business goals. Which business organization has just one person who is responsible for all decisions in the business, retains all profits, and has unlimited personal liability for all business decisions?
A. Corporation
B. Sole proprietorship
C. Partnerships
D. Limited liability company
Answer: B
Explanation:
Explanation/Reference:
Answer option B is correct.
A sole proprietor is the owner of the business, has the authority over the business, and is responsible for all liabilities the business may incur. Sole proprietorships are the easiest organizations to create and generally to manage.
Answer option A is incorrect. Partnerships are formed with two or more people and the people involved generally share the decisions, profits, and liabilities.
Answer option C is incorrect. A limited liability company is similar to sole proprietorship, but the owner has limited liability and is somewhat protected from the faults and liabilities of the legal organization.
Answer option D is incorrect. A corporation is a legal entity that limits liabilities to the assets of the organization.
Reference: Professional in Human Resources Certification Study Guide, Sybex, ISBN: 978-0-470-43096-5.
Chapter Four: Workforce Planning and Employment. Official PHR and SPHR Certification Guide, HR Certification Institute, ISBN: 978-1-586-44149-4, Section III, The US Body of Knowledge.
Chapter: Business Management and Strategy
Objective: Organizations

NEW QUESTION: 2
Long-range trend analysis is typically used in performing which of the following activities?
A. Control charting
B. Internal auditing
C. Management review
D. Design review
Answer: C

NEW QUESTION: 3







A. Yes
B. No
Answer: B