Economics Review

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

Business owned by shareholders is

• Partnership

• Sole proprietorship

• Corporation

• Franchise

A group of people who jointly oversee the activities of a corporation

• Employees

• Board of Directors

• Volunteers

• None of the above

A corporation can continue to exist after the death of its owners

• True

• False

Franchisors usually provide all of the listed items except....

• Advertising

• Training

• Loan

• Equipment

What do we call a person who is willing to take the risks of starting a business in order to make a profit?

• Proprieter
• Partner
• Entrepreneur
• Incorporater

What type of business sells stocks and bonds

• Sole owner

• Partnership

• Corporation

• Schools

A limited liability partnership means

• liability is unlimited

• liability is shared up to a certain percentage

• no liabilities

A father who wants to take his son into the business with him should form this type of business.

• Sole Proprietorship

• Partnership

• Corporation