Business Ownership 1b

26. Which business form requires an annual meeting with shareholders?

• a) Sole proprietorship
• b) Partnership
• c) Corporation
• d) Cooperative

27. What type of business form allows for profit distribution to charity?

• a) Sole proprietorship
• b) Partnership
• c) Corporation
• d) Cooperative

28. What is the key benefit of a partnership over a sole proprietorship?

• a) Limited liability for partners
• b) Easier formation
• c) Lower taxes
• d) Greater control

29. Which form of business ownership is subject to double taxation?

• a) Sole proprietorship
• b) Partnership
• c) Corporation
• d) Cooperative

30. What is the primary disadvantage of a corporation's complexity?

• a) Higher costs
• b) Limited liability
• c) Lower profits
• d) Tax benefits

31. Which of the following is a characteristic of a sole proprietorship?

• a) Limited liability for the owner
• b) Easier access to capital
• c) Complex decision-making
• d) Lower tax rates

32. What is the main advantage of a partnership over a sole proprietorship?

• a) Limited liability for partners
• b) Easier formation
• c) Lower taxes
• d) Greater control

33. In a limited partnership (LP), who typically has limited liability?

• a) General partners
• b) Limited partners
• c) Shareholders
• d) Employees

34. What is a common way to resolve disputes in a partnership?

• a) Litigation
• b) Mediation
• c) Government intervention
• d) Ignoring the issue

35. What is the primary goal of a limited liability company (LLC)?

• a) Maximizing profits
• b) Minimizing competition
• c) Providing limited liability
• d) Avoiding taxation