Forms of Business Ownership

Forms of Business Ownership

Multiple Choice

1. What is a Sole Proprietorship?

• Business owned by president

• Business owned by one person

• Business owned by several companies

• Business owned by a company

Multiple Select

2. Sole proprietor means _________

• Single owner

• Partners

Open Ended

Give me an example of a Sole proprietor

Multiple Select

Sole Proprietorship is most suitable for

• Medium scale concerns

• Large scale concerns

• Small scale concerns

• None of the above

Multiple Choice

What form of business ownership is subject to the least taxation and government regulation?

• Sole Proprietorship

• Limited Partnership

• Family owned business

• Corporation

Multiple Select

Advantages of a sole trader are:

• Limited liability

• The owner makes all the decisions

• The owner takes all the profit

• Can raise substantial capital

Multiple Choice

A business with one owner is known as a:

• Company

• Sole trader

• Partnership

Multiple Select

Which of the following business are examples of SOLE PROPRIETORSHIP? (Choose 2)

Multiple Choice

Sole Proprietorship: All responsibilities are yours

• Advantage

• Disadvantage

Multiple Choice

Advantage: Start-up cost are low

• Sole Proprietorship

• Partnership

• Franchising

• Entrepreneurship

Multiple Choice

It is a form of business ownership, where there is one owner who's responsible for the business.

• SOLE PROPRIETORSHIP

• PROPRIETORSHIP

• SOLE PREPRIOTERSHIP

• SOAL PROPREITORSHIP

Multiple Choice

Which form of ownership doesn't have limited liability?

• Closed corporation

• Private company

• Public company

• Partnership

Multiple Choice

This type of business ownership is often entered into by people with complementary skills

• Sole proprietorship

• Partnership

• Corporation

• Franchise

Multiple Choice

This type of business organization makes it easier to secure financing because more than one person may apply for credit.

• Sole proprietorship

• Partnership

• Corporation

• Franchise

Multiple Choice

Which of the following is an advantage of a partnership?

• Unlimited Liability

• Arguments

• Shared responsibility

• Less investors

Multiple Choice

Two Brothers Pizza would most likely show which type of ownership

• Partnership

• Corporation

• Stock and Bonds

• Single Ownership

Multiple Select

Advantages of a partnership are:

• The partners split the profit

• Unlimited liability

• Raise more capital than a sole trader

• Share the workload

Multiple Select

The two forms of business ownership with unlimited liability are:

• Sole trader

• Public company

• Partnership

• Private company

Multiple Choice

A business run by 2-20 people and has unlimited liability is known as a:

• Company

• Sole trader

• Partnership

Multiple Select

Which of the following business are examples of PARTNERSHIP? (Choose 2)

Multiple Choice

Two heads are better than one

• Advantage: Sole Proprietorship

• Disadvantage: Partnership

• Advantage: Partnership

• Disadvantage: Sole Proprietorship

Multiple Choice

Advantage: Shared responsibility

• Sole Proprietorship

• Partnership

• Franchising

• Entrepreneurship

Multiple Choice

This type of organization is a legal entity separate from its owners.

• Sole proprietorship

• Partnership

• Corporation

• Franchise

Multiple Choice

The life of this business form is NOT limited to the time that the owner/owners are able to operate the business.

• Sole proprietorship

• Partnership

• Corporation

• Franchise

Multiple Choice

Owners (or stockholders) of this type of organization enjoy limited liability.

• Sole proprietorship

• Partnership

• Corporation

• Franchise

Multiple Choice

The Board of Directors control daily business operations for this type of business.

• Sole proprietorship

• Partnership

• Corporation

• Franchise

Multiple Choice

Owners of this type of organization may receive dividends.

• Sole proprietorship

• Partnership

• Corporation

• Franchise

Multiple Choice

Income is taxed twice for this form of business.

• Sole proprietorship

• Partnership

• Corporation

• Franchise

Multiple Choice

This type of business is owned by stockholders.

• Sole proprietorship

• Partnership

• Corporation

• Franchise

Multiple Choice

Which of the following is an advantage of operating a large established business as a corporation?

• Shares can be sold to the public to raise additional finance

• Financial accounts are published

• Shares can only be sold to invited investors to raise finance

• Owners have unlimited liability

Multiple Choice

Which of the following best describes the term limited liability? If the business fails:

• Personal possessions of the owner can be taken to pay any debts

• The owner is personally liable for all the debts of the business

• There is no limit on the amount the owner has to pay to settle debts

• The owner only loses the amount invested in the business

Multiple Choice

The major policy and financial decision makers of a corporation are determined by the...

• CEO/GM/President

• Chairman of the Board

• Shareholders

• Board of Directors

Multiple Choice

What is the name of a person who owns part of a corporation?

• Stakeholder

• Shareholder

• Trust Agent

• Chairman

THANK YOU