FBLA Business Law: Business Organizations |
2026/2027 | A+ Grade | Questions and Correct
Solutions | Complete Competition Study Guide
Terms in this set (44)
Sole Proprietor A business entity owned and managed by one
individual. The owner, called a sole proprietor,
does not pay separate income tax on the
company, but reports all losses and profits on
his/her individual tax return.
Partnership A partnership is a for-profit business organization
comprised of two or more persons. State laws
govern partnerships. The consequence of this
profit sharing is that partners are jointly and
severally liable for the partnership's debts.
Corporation a legal entity that is separate and distinct from its
owners. Corporations enjoy most of the rights
and responsibilities that individuals possess: they
can enter contracts, loan and borrow money, sue
and be sued, hire employees, own assets, and
pay taxes. Some refer to it as a "legal person."
, Legal Liability Company a business structure in the United States whereby
the owners are not personally liable for the
company's debts or liabilities. Limited liability
companies are hybrid entities that combine the
characteristics of a corporation with those of a
partnership or sole proprietorship.
Functional organizational structure a common type of organizational structure in
which the organization is divided into smaller
groups based on specialized functional areas,
such as IT, finance, or marketing.
Divisional organizational structure gives a larger business enterprise the ability to
segregate large sections of the company's
business into semi-autonomous groups.
Matrix organizational structure one of the most complex reporting structures
that a company can utilize. Basically, it's where
the reporting structures are set up as a grid
instead of in the traditional hierarchy. Each
employee has dual reporting relationships to
both a project manager and a functional
manager.
Flat organizational structure an organization structure with few or no levels of
management between management and staff
level employees. The flat organization supervises
employees less while promoting their increased
involvement in the decision-making process.
Low level management Low-level managers focus on controlling and
directing. They serve as role models for the
employees they supervise.
2026/2027 | A+ Grade | Questions and Correct
Solutions | Complete Competition Study Guide
Terms in this set (44)
Sole Proprietor A business entity owned and managed by one
individual. The owner, called a sole proprietor,
does not pay separate income tax on the
company, but reports all losses and profits on
his/her individual tax return.
Partnership A partnership is a for-profit business organization
comprised of two or more persons. State laws
govern partnerships. The consequence of this
profit sharing is that partners are jointly and
severally liable for the partnership's debts.
Corporation a legal entity that is separate and distinct from its
owners. Corporations enjoy most of the rights
and responsibilities that individuals possess: they
can enter contracts, loan and borrow money, sue
and be sued, hire employees, own assets, and
pay taxes. Some refer to it as a "legal person."
, Legal Liability Company a business structure in the United States whereby
the owners are not personally liable for the
company's debts or liabilities. Limited liability
companies are hybrid entities that combine the
characteristics of a corporation with those of a
partnership or sole proprietorship.
Functional organizational structure a common type of organizational structure in
which the organization is divided into smaller
groups based on specialized functional areas,
such as IT, finance, or marketing.
Divisional organizational structure gives a larger business enterprise the ability to
segregate large sections of the company's
business into semi-autonomous groups.
Matrix organizational structure one of the most complex reporting structures
that a company can utilize. Basically, it's where
the reporting structures are set up as a grid
instead of in the traditional hierarchy. Each
employee has dual reporting relationships to
both a project manager and a functional
manager.
Flat organizational structure an organization structure with few or no levels of
management between management and staff
level employees. The flat organization supervises
employees less while promoting their increased
involvement in the decision-making process.
Low level management Low-level managers focus on controlling and
directing. They serve as role models for the
employees they supervise.
