Entrep. 9-27-22

Abigail and Olivia decided to start a business together. What is the term for this type of business?

• Company

• Sole trader

• Partnership

William and Nora decided to start a business together, sharing the profits equally. However, they were aware that they would have unlimited liability. This type of business is known as a:

• Company

• Sole trader

• Partnership

What is the name of a person who owns part of a corporation?

• Stakeholder
• Shareholder
• Trust Agent
• Chairman

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

• Proprietorship
• Partnership
• Corporation
• Franchise

Which of the following best describes the term limited liability? If the business fails:

• Personal possessions of the owner can be taken to pay any debts

• The owner is personally liable for all the debts of the business

• There is no limit on the amount the owner has to pay to settle debts

• The owner only loses the amount invested in the business

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

He needs less capital for his business.

• Retailer

• Wholesaler

He selects centre point of the city for business.

• Retailer

• Wholesaler

What is a franchise?

• Where a business sells the rights to their brand
• Where you have full control
• Where you keep all the profits