Economics Chapter 8

Which is an example of a sole Proprietorship?

• McDonald’s

• Baan Thai

• Jojos in house refurbishment

• Nail Envy

An owner of a sole Proprietorship is personality liable for all assets

• True

• False

A sole proprietorship has to share their profits with a partner

• True

• False

Why should you cover your business with insurance?

• So that there is a lower chance of accidents happening

• It is required by the state

• To make your customers feel safer

• To prevent your business from being completely screwed if you get sued

Sole Proprietorships have a lower chance of...

• Growing their capital

• Being sued

• personal liability

• Failing in their first year

This type of business is owned by two or more people.

• Sole Proprietorship
• Partnership
• Corporation
• Franchise

Unlimited liability means?

• The owner is personally liable to cover business debts and any costs the business can not cover

• The owner(s) do not have to cover all business costs personally in the case of them being sued or going into debt

• A corporation is not responsible for taking care of lawsuits

• A sole Proprietorship will have enough money and coverage to pay any and all debts

Law firms and doctor's offices are examples of.....

• Sole Proprietorships
• Partnerships
• Corporations
• Franchises

Floral shops, bookstores and farms are examples of.....

• Sole Proprietorships
• Partnerships
• Corporations
• Franchises

Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

• Partnership
• Sole Proprietorship
• Corporation
• Franchise