POBF 2.01 Review

An advantage of this type of business ownership is that 100% of the profits belong to you. What type of ownership is this?

• Corporation
• Cooperative
• Partnership
• Sole Proprietorship

Some small businesses do not wish to form a corporation because of the fact that the corporation will pay taxes and then the owners will also pay taxes. This is knows as what kind of taxation?

• Limited
• Single
• Double
• Unlimited

Jane has always wanted to own a restaurant. Instead of opening her own restaurant, she wants to buy a restaurant with a nationally known name. She will follow their guidelines and sell their products only. What type of business will Jane own?

• LLC
• Cooperative
• Sole Proprietorship
• Franchise

Some businesses enter into a special project for a limited time. This is known as a:

• Cooperative
• Joint Venture
• Corporation
• Franchise

Renee decided to turn her hobby of making seasonal jewelry into a business. She rented a storefront on Main Street and followed the few guidelines and requirements for opening her business. She will work alone and there are no other owners. What type of business did Renee begin?

• sole proprietorship
• partnership
• corporation
• cooperative

An advantage of this type of business ownership is that 100% of the profits belong to you. What type of ownership is this?

• Sole Proprietorship
• partnership
• corporation
• cooperative

Sam and Ron decided to split the work day at the shoe store. Sam is in charge of opening and Ron oversees closing. They are enjoying what advantage of partnerships?

• More credit and capital available
• Work load more evenly shared
• Losses are shared
• Can hire who they want

One of Renee’s customers slipped and fell on the floor in her jewelry shop. There were some beads on the floor from a broken necklace that caused her to slip.. The customer broke her arm and is asking Renee to pay her medical expenses of $7,500. Renee is experiencing which disadvantage of sole proprietorship?

• Limited to the lifetime of owner
• Must make all decisions
• All loss of business is hers
• Unlimited liability

Bill and Frank are considering opening a movie theater. Bill has $50,000 to invest. Frank has good credit. According to these facts, what advantage do they have by forming a partnership?

• More capital and credit available
• Share work load
• Make decisions together
• Work shorter hours

Which type of business has a better chance of an unlimited lifetime?

• Sole Proprietorship
• Partnership
• Corporation