Forms of Business Ownership Review

A business with one owner is known as a:

• Company

• Sole trader

• Partnership

The two forms of business ownership with unlimited liability are:

• Sole trader

• Public company

• Partnership

• Private company

Advantages of a partnership are:

• The partners split the profit

• Unlimited liability

• Raise more capital than a sole trader

• Share the workload

What is the most common form of business ownership?

• Corporation
• Company
• Sole Proprietorship
• LLC

This type of business is subject to many more laws and are more difficult to form.

• Proprietorship
• Partnership
• Corporation
• Franchise

This type of organization is a legal entity separate from its owners.

• Sole proprietorship
• Partnership
• Corporation
• Franchise

Which of the following is a drawback for an entrepreneur setting up a business as a sole proprietorship?

• Profit is shared

• Financial accounts are kept private

• Limited liability

• Unlimited liability

Which legal structure would an individual wishing to start-up a small business choose because it is quick, easy and inexpensive to set up?

• Sole proprietorship

• Partnership

• Privately Held Corporation

• Corporation

What form of business ownership is subject to the least taxation and government regulation?

• Sole Proprietorship

• Limited Partnership

• Family owned business

• Corporation

This is a form of business ownership where two or more people act as co-owners.

• PARTNER

• PARTNERSHIP

• BUSINESS PARTNER

• COMPANY