Economics Types of Businesses Quiz

What type of business is owned by small group who have entered into an agreement?

• Corporation
• Sole proprietorship
• Partnership
• Franchise

This business is owned by a number of people and are run by a Board of Director's.

• Sole proprietorship
• Corporation
• Franchise
• Partnership

This business makes up for 70% of all start up businesses.

• Franchise
• Partnership
• Sole proprietorship
• LLC

This business usually serves the neediest populations.

• Sole proprietorship
• Joint ventures
• Nonprofits
• Cooperation

In which of the following would one person be responsible for all of the risks but also receive all of the profits?

• Corporation
• Propreitership
• Partnership
• Dual owner business

What do we call a person who is willing to take the risks of starting a business in order to make a profit?

• Give all the money to Mr. Howard!
• Partner
• Entrepreneur

What is ONE advantage of a Partnership?

• Someone else can help with decisions, etc.
• Double taxes
• Disagreements

What is ONE advantage of a Corporation?

• Difficult to start
• Make all of the decisions
• Easy to raise money!

What is ONE disadvantage of a Corporation?

• Disagreements
• Less direct control
• The risk is all on one person

What is ONE advantage of a sole proprietorship?

• You make ALL the decisions
• Easy to raise money
• You have to share profits