Entrepreneurship--Lesson 3-3 Slides

Multiple Choice

What is a business owned and operated by two or more people?

• Sole Proprietorship
• Partnership
• Corporation

Multiple Choice

This type of business organization involves two or more individuals who agree to contribute resources to the business in return for a share of the profit

• Corporation
• Sole Proprietorship
• Limited Liability Corporation
• Partnership

Multiple Choice

Which of the following best describes a partnership?

• A business owned by one person

• A business owned by two or more people

• A business with legal rights independent of its owners

• A non-profit organization

Multiple Choice

Which of the following is an advantage of a sole proprietorship?

• Little government regulation

• Difficult to raise start-up capital

• Owners must share responsibility

• Profits are taxed as corporate income

Multiple Select

Which of the following are responsibilities of a corporation's board of directors and officers? Check all that apply.

• Making important decisions affecting the company

• Distributing dividends

• Managing day-to-day operations

• Setting up government regulations

Multiple Choice

Which of the following statements about LLCs is correct?

• LLCs are not subject to the rules for S corporations

• Owners of LLCs are called shareholders

• LLCs do not provide limited liability

• LLCs cannot participate in management

Multiple Choice

What is one key difference between a sole proprietorship and a partnership?

• A sole proprietorship is owned by one person, while a partnership is owned by two or more people.

• A sole proprietorship is owned by a corporation, while a partnership is owned by one person.

• A partnership is owned by one person, while a sole proprietorship is owned by two or more people.

• A corporation is owned by two or more people, while a partnership is owned by one person.

Multiple Choice

Which of the following is NOT a disadvantage of an LLC?

• A single owner cannot establish an LLC.

• Many states limit the life of an LLC.

• The type of businesses may be limited by state law.

• LLCs are required to pay double taxation.