Question Bank for Grade 9 Business

Select the key advantages as they apply to: (Sole) Proprietorship

• All decisions made by 1, few restrictions, low startup costs, no add fed. taxes, all profit kept by 1
• Low failure rate, business assistance, buying power, name recognition, potential for large profits
• Owners can deduct many losses on personal returns; losses share between partners
• Protected from liability, easy startup, no add fed. taxes

Select the key advantages as they apply to: General Partnership

• Owners can deduct many losses on personal returns; losses share between partners
• Good for raising money; Gen partners get money but maintain authority; Ltd partners can leave any time
• Protected from liability, easy startup, no add fed. taxes
• Low failure rate, business assistance, buying power, name recognition, potential for large profits

Select the key advantages as they apply to: Limited Partnership

• Good for raising money; Gen partners get money but maintain authority; Ltd partners can leave any time
• Owners can deduct many losses on personal returns; losses share between partners
• Stocks provide funding options; many tax deductions; no shareholder liability
• Protected from liability, easy startup, no add fed. taxes

Select the key advantages as they apply to: C-Corp (default corporation)

• Stocks provide funding options; many tax deductions; no shareholder liability
• All decisions made by 1, few restrictions, low startup costs, no add fed. taxes, all profit kept by 1
• Owners can deduct many losses on personal returns; losses share between partners
• Low failure rate, business assistance, buying power, name recognition, potential for large profits

Select the key advantages as they apply to: S-Corp

• No corporate taxation; no double taxation, no shareholder liability
• Serve the common good, exempt from taxes
• Owners can deduct many losses on personal returns; losses share between partners
• Protected from liability, easy startup, no add fed. taxes

Select the key advantages as they apply to: LLC

• Protected from liability, easy startup, no add fed. taxes
• No corporate taxation; no double taxation, no shareholder liability
• Owners can deduct many losses on personal returns; losses share between partners
• Low failure rate, business assistance, buying power, name recognition, potential for large profits

Select the key advantages as they apply to: Nonprofit

• Serve the common good, exempt from taxes
• Employees only taxed on income
• Owners can deduct many losses on personal returns; losses share between partners
• Low failure rate, business assistance, buying power, name recognition, potential for large profits

Select the key advantages as they apply to: Co-op

• Employees only taxed on income
• Low failure rate, business assistance, buying power, name recognition, potential for large profits
• Owners can deduct many losses on personal returns; losses share between partners
• Protected from liability, easy startup, no add fed. taxes

Select the key advantages as they apply to: Franchise

• Low failure rate, business assistance, buying power, name recognition, potential for large profits
• All decisions made by 1, few restrictions, low startup costs, no add fed. taxes, all profit kept by 1
• Owners can deduct many losses on personal returns; losses share between partners
• Employees only taxed on income

What is the primary purpose of the SWOT Analysis?

• To evaluate 4 areas important to a businesses success
• To evaluate the competition
• To check on distributors
• To decide if you should change locations