Business Structure

-Two or more owners

-Lower taxes

-Unlimited Liability

• Partnership

• Sole Proprietorship

• Companies

• All of the above

A _______________ is a business owned jointly by two or more people. 

• Partnership 
• Private Company

• Public Company

• Sole Propirtorship

What type of paperwork is needed for a Partnership?

• Business License

• Partnership Agreement

• Corporate Charter

• Franchise Agreement

Which of the following is a disadvantage of setting up a business as a partnership?

• Shared losses

• Shared workload

• Shared profit

• More ideas generated

How many partners are there in a typical partnership?

• 2

• 2-4

• 2-20

• 1

More owners means more disagreements for what type of structure?

• Public Limited

• Partnerships

• Private Limited

• Sole Trader

_______________is a legal term for being held accountable

• Liability

• Assets

• Bankruptcy

• Claim

Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.

• Sole Trader

• Partnership

• Private Company

• Public Company

How is a general partnership organised?

• Every partner shares equally in both responsibility and liability

• The doctors, lawyers, or accountants who form a general partnership hire others to run the partnership

• No partner is responsible for the debts of the partnership beyond his or her investment

• Only one partner is responsible for the debts of the partnership

What is a major advantage of a business that is a partnership rather than a sole proprietorship?

• The responsibility for the business is shared
• The business is easy to set up
• The partners are not responsible for business debts
• The business is easy to sell