Forms of Business/Personal Property Quiz

__________ is a business owned and operated by one person.

• sole proprietorship

• partnership

• corporation

__________ is a form of business in which two or more persons carry on as co-owners of a business for profit.

• sole proprietorship

• partnership

• corporation

__________ is a business entity treated by law as if it is an individual person, separate from its owners.

• sole proprietorship

• partnership

• corporation

Select all the advantages of sole proprietorship:

• The owner has total control of the business

• The owner gets to keep all the profits

• More financing is available

Select all the advantages of partnership:

• The owner has total control of the business

• Partners share the burden of work.

• Partners share liability

Select all the advantages of corporation:

• They can obtain large amounts of capital through the sale of shares.

• A corporation continues to exist even after the founders, managers, and directors are gone.

• Partners share liability

Select all the disadvantages of sole proprietorship:

• The business must be financed by the owner

• If the owner dies or closes the business, the

  business ceases to exist.

• The owner has unlimited liability.

Select all the disadvantages of partnership:

• If the owner dies or closes the business, the

  business ceases to exist.

• Partners must share the profits.

• Partners are liable for the actions of other partners.

Select all the disadvantages of corporation:

• The founders of the corporation can lose control of the business to shareholders or the board of directors.

• They are taxed twice

• Partners are liable for the actions of other partners.

__________ is anything that can be owned, other than real estate.

• Personal Property

• Intellectual Property

• Copyright

• Trademark

• Patent