3.2 Entrepreneurship Quiz

What is the type of business that is owned by one person?

• sole proprietorship

• partnership

• corporation

Which type of business ownership has double taxation?

• proprietorship

• LLC

• corporation

Which type of a business is tied to the lifespan of its owners?

• limited partnership

• C corporation

• nonprofit corporation

Unlimited liability means that a business owner cannot be legally forced to use personal money and possessions to pay business debts.

• true

• false

Business owners with limited liability only risk the money specifically invested in the business.

• true

• false

A sole proprietorship is the simplest and least expensive option for business ownership.

• true

• false

A sole proprietorship has limited liability for any business debt.

• true

• false

A business owner's ____ is his or her legal obligation to use personal assets to pay the debts of the business.

• capital

• liability

• decision

Each share in a corporation may earn its owner a(n) ________, which is a portion of the corporation's profit.

• stock

• dividend

• liability

A(n) ________ is a business owned, controlled, and operated for the mutual benefit of its members.

• corporation

• LLC

• cooperative