3A Ch 1 Quiz 1

If I want to be the ONLY owner of the business, I can set up

• Sole proprietorship

• Partnership

• Company

I am alone. Which business structure can I set up?

• Sole proprietorship

• Partnership

• Company

• Sole proprietorship OR Company

I would like to set up a business with my husband and son. Which business structure can I set up?

• Sole proprietorship

• Partnership

• Company

• Partnership OR Company

In a sole proprietorship, if the business fail to pay its debts ->

As an OWNER, I have to pay the business debts with my personal money.

• True

• False

In a COMPANY, if the business fails to pay its business debts => I, as an owner, have to pay using my personal money.

• TRUE

• FALSE

I must have baking skill before I can set up a bakery.

• True

• False

I must have accounting skills in order to set up a business.

• True

• False

In a partnership, if my partner do a fraud AND I am not aware of it, I will be held accountable too.

• True

• False

My small business is UNLIKELY to have debts. I SHOULD set up:

• Sole proprietorship

• Partnershipship

• Company

In a partnership, profits are always shared EQUALLY.

• True

• False