HST 413 2.12 Quiz

Which is a business owned and operated by a single individual?

• sole proprietorship

• corporation

• partnership

• retailer

For which are sole proprietors completely responsible?

• financial losses

• sales of stock

• distribution of services

• retail sales

Which describes an important difference between general partnerships and limited partnerships?

• A general partnership has stockholders while a limited partnership has a small group of investors.

• A general partnership has unlimited liability for all partners while a limited partnership has limited liability.

• There are a maximum of three partners in a limited partnership while a general partnership can have any number of partners.

• Shares in a general partnership can be purchases anywhere while shares in a limited partnership can only be purchased through a stock exchange.

Because of the unlimited liability of all partners, a general partnership most closely resembles which other business type?

• sole proprietorship

• board of directors

• public corporation

• limited partnership

Which is an advantage of partnerships over sole proprietorships?

• Partnerships establish a democratic system for making business decisions.

• Partnerships involve less paperwork and fewer legal fees.

• Partnerships generally have more money to invest in starting or expanding a business.

• Partnerships protect their investors against business debts incurred by the managers.

Which is an advantage of a limited partnership?

• Owners pay no taxes on profits.

• All partners have to agree when making business decisions.

• Only a small number of investors can be involved.

• Each partner is responsible for only a portion of the business's debts.

Which dominates the media industry?

• innovative entrepreneurs

• monopolistic markets

• Internet news sources

• media conglomerates

Which type of business is owned by anyone who wants to buy stock?

• public corporation

• limited partnership

• sole proprietorship

• private corporation

Which type of business is owned by a small pool of investors?

• public corporation

• limited partnership

• sole proprietorship

• private corporation

Which spells out the business model that a company follows?

• held files

• business plan

• corporate charter

• partnership contract