3A Ch 1 Quiz 1

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

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

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

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.

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

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

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

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

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

In a partnership, profits are always shared EQUALLY.