The most common form (based on # of businesses) of business ownership in the U.S. (Hint: it is also the easiest to start.)

• corporation

• partnership

• sole proprietorship

• LLC

Which of the following is considered a disadvantage of a sole proprietorship?

• owner keeps all the profit

• unlimited liability

• owner makes all the decisions

• easy to start

This form of ownership has multiple owners that must enter an agreement that sets forth how profits and losses will be divided as well as responsibilities of the owners.

• corporation

• cooperative

• nonprofit

• partnership

How does a person become an owner of a corporation?

• inherit ownership

• purchase shares of stock

• purchase a franchise

• be elected to the board of directors

Which of the following are considered advantages of a corporation?

• Double taxation

• Difficult to form

• Limited liability

• You cannot lose more than you invest in the business.

This form of ownership involves paying a fee for the right to sell another's product and use their name.

• Corporation

• Cooperative

• Joint Venture

• Franchise

This type is business is formed with social, charitable, or political cause in mind rather than generating a profit.

• nonprofit

• S corporation

• Joint Venture

• LLC

This form of ownership combines some of the best advantages of a partnership (taxed once) and a corporation (limited liability) for a small business.

• Cooperative

• Sole proprietorship

• Limited Liability Corporation

• Joint Venture

This management activity involves setting goals and developing strategies to achieve them. Failing to do this can be a major problem for some businesses.

• staffing

• controlling

• planning

This management activity involves comparing results to what was planned.

• controlling

• leading

• organizing