Chapter 4 Review

Any money and assets owned by a sole proprietor can be claimed by creditors to pay debts.

• True

• False

Partnerships and Sole Proprietorships are easy to start

• True

• False

Corporations are owned by one or more shareholders and are managed by a board of directors.

• True

• False

Most businesses are partnerships.

• True

• False

A written legal document that defines ownership and operating procedures and conditions for the business.

• Cooperative

• Articles of Incorporation

• Franchise

• Limited Liability

A business owned by only one person

• Corporation

• Partnership

• Sole Proprietorship

A company that is registered by a state and operates apart from its owners

• Corporation

• Partnership

• Sole Proprietorship

A business owned by two or more people who share its risk and rewards

• Corporation

• Partnership

• Sole Proprietorship

If you were going to start a babysitting business by yourself, which type of ownership would be best?

• Corporation

• partnership

• sole proprietorship

Sole proprietorships account for about _____ of all the businesses in the United States.

• 30 percent

• 50 percent

• 70 percent

• 90 percent