Businesses and Types of Ownership

What is a Sole Proprietorship?

• A business where 2 or more people share ownership

• A business owned by shareholders

• A business that is owned by one individual

Which of the following is an advantage of sole proprietorship?

• Owner has complete control

• Owner gets all the stress

• Cannot raise capital

• All the above

Partnership requires at least three people

• True

• False

Business owned by shareholders is

• Partnership

• Sole proprietorship

• Corporation

• Franchise

How is a corporation different from a sole proprietorship?

• Corporations are owned by only one person
• Corporations can sell stock to raise money for the business. 
• Sole proprietorships have limited liability for the owners.
• Sole proprietorships require a legal charter to start the business.

Commercial enterprise that dedicates itself to buying already made products and reselling them to make profit?

• Merchandising Business

• Limited Liability Company

• Partnership

• Service Business

This business takes raw materials and mass produces goods. Usually it uses robots, computers, assembly lines, and human labor to make goods.

• Proprietorship

• Partnership

• Merchandising Business

• Manufacturing Business

What kind of business specializes in performing services for the consumers?

• Corporation

• Service Business

• Hybrid Business

• Partnership

Which is NOT a basic type of business ownership?

• proprietorship
• partnership
• corporation
• retail

What type of business is Walmart considered?

• Sole partnership

• Corporation

• Partnership

• Sporting goods