SSEMI3a SAG Quiz

The single most important advantage of a sole proprietorship is

• The ability to allow your customers to purchase stocks.

• Limited liability

• Unlimited liability

• The independence its owners have.

In a sole proprietorship, liability is

• General

• Limited

• Unlimited

• There is no liability.

One DISADVANTAGE of a corporation is that

• it has limited liability.

• it has unlimited liability.

• it is taxed twice.

A sole proprietorship is a business where all of the following are true EXCEPT

• the owner has complete control over decision making.

• profits are taxed once.

• the entrepreneur is responsible for all losses.

• the entrepreneur can sell stock to increase its capital.

In a partnership, the owners

• have limited liability.

• have unlimited liability.

• always split the profits 50/50, no matter what.

• cannot be separated or bought out.

Which of the following have limited life?

• Sole proprietorship

• Partnership

• Corporation

• Sole proprietorship and partnership

• Corporation and sole proprietorship

Which of the following statements is TRUE?

• In a sole proprietorship, the stockholders make all of the decisions.

• In a corporation, the stockholders make all of the decisions.

• In a partnership, the stockholders make all of the decisions.

• In a corporation, the decisions are shared by the CEO, the Board of Directors, etc.

• None of these answers are true.

Most businesses in the United States are

• sole proprietorships.

• partnerships

• corporations

In the United States, _______________ account for the most profits made by businesses.

• sole proprietorships.

• partnerships.

• corporations

What are the two types of liability for businesses?

• General and unlimited.

• General and limited.

• Unlimited and limited.

• General and limitless.