Types of Business Ownership

Which of the following is NOT a type of business ownership?

• partnership

• sole proprietorship

• entrepreneurship

• company

Which of the following is a type of business which operates as a separate legal entity?

• corporation

• franchise

• partnership

• sole partnership

Which of the following is defined as a business which is owned and operated by one individual?

• partnership

• sole proprietorship

• company

• franchise

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

• Sole Proprietorship
• Partnership
• Corporation
• Franchise

This type of business is owned by many people called stockholders.

• Sole Proprietorship

• Partnership

• Company

• Franchise

How is a company different from a sole proprietorship or partnership?

• A company has only one or two owners.

• A company is usually owned by one person.

• A company requires a legal charter with the state.

• The owners (stockholders) have limited liability.

A characteristic of a sole proprietorship is that the owner:

• Has access to unlimited funds
• Receives all the profit
• Transfers all the risk
• Delegates all functions

Characteristics include owned by two or more people and may be general or limited

• Sole Propriotorship

• Partnership

• Company

Sara’s Hair Palace is a small, locally owned beauty salon in Sterling. This represents what type of business?

• Company

• Partnership

• Sole proprietorship

What is the definition of UNLIMITED LIABILITY?

• A legal obligation on the owners of a business to settle all debts of the business. In law there is no distinction between the assets and debts of the business and the personal assets and debts of the owner.

• Owners are not fully liable for the company’s debts.