Forms of Ownership Review

How does an owner incorporate a sole proprietorship?

• File forms through the County Clerk's office
  
• File a Doing Business As form with the state
• Contact the Secretary of State's office
• Sole proprietorships aren't incorporated

How many people typically work for a sole proprietorship?

• It varies by state
• Only one
• One supervisor and no more than one other employee
• No more than five total people

How is a sole proprietorship taxed?

• The owner pays income tax on profits but the business isn't separately taxed
• The business is taxed on profits but the owner doesn't have to pay income tax
• The business is taxed on profits and the owner also pays income tax
• Neither the business nor the owner is subject to taxes

Which of the following is NOT considered to be a disadvantage of a general partnership?

• Partners can be held personally liable for business debts
• Disagreements between partners can be common
• The partnership isn't separately taxed

Catherine and Carl have a car washing business. They are general partners. When washing Collin's car, Carl accidentally causes severe water damage to the car's interior. Catherine wasn't there when it happened, and isn't in charge of washing the cars. Who can be held liable for the damage to Collin's car?

• Only Carl
• The business, Carl and Catherine
• Everyone who works at the business, including Carl and Catherine
• Only Carl and Catherine
  

Andrew, Allen, Alex and Abby are general partners. They own and run an Antelope farm. Andrew put up most of the money to establish the farm, while Abby spends the most time running the farm. There's no partnership agreement on how profits will be shared. How will the farm's profits be split?

• Andrew and Abby will split 75% of the profits, with Allen and Alex splitting the other 25% of the profits
• Andrew and Abby will each receive 50% of the profits
• Andrew will receive all of his money back, and the remaining profits will be evenly split between the other three partners
• Andrew, Allen, Alex and Abby will each receive 25% of the profits

Which of the following attributes is common to all types of business partnerships?

• The business isn't separately taxed
• All partners can be held personally liable for partnership debts
  
• There are no formal requirements for the formation of the partnership

The owners of a corporation are called

• Directors
• Partners
• Shareholders
• Founders

A business operation that is taxed 2 times is called a

• Sole Proprietorship
• Partnership
• Corporation

What is the most common form of business ownership?

• Sole Proprietorship

• Partnership

• Corporation