Business Ownership Quiz

What is the most common form of business ownership?

• partnership

• sole proprietorship

• corporation

• limited liability company

Which type of business ownership offers limited liability to its owners?

• Sole Proprietorship

• Partnership

• Corporation

• Limited Liability Company (LLC)

In a partnership, how are the profits and losses shared among the partners?

• Profits and losses are shared based on the partnership agreement.

• Profits and losses are shared based on the number of years each partner has been in the partnership.

• Profits are shared equally among the partners, but losses are borne by one partner.

• Profits and losses are shared equally among the partners.

Which type of business ownership has the advantage of separate legal entity status?

• sole proprietorship

• partnership

• limited liability company

• corporation

What is the main disadvantage of a sole proprietorship?

• Unlimited personal liability

• Limited control over decision-making.

• Difficulty in raising capital.

• Limited growth potential.

Which type of business ownership is characterized by a single owner who has complete control and responsibility?

• Partnership

• Sole proprietorship

• Corporation

• Limited liability company

What is the advantage of a partnership over a sole proprietorship?

• Limited liability, increased control, and tax benefits.

• Higher profits, easier decision-making, and reduced paperwork.

• Flexibility, lower costs, and faster decision-making.

• Shared responsibilities, resources, and risks

Which type of business ownership is formed by filing articles of incorporation?

• partnership

• sole proprietorship

• limited liability company

• corporation

What is the main advantage of a limited liability company (LLC)?

• Tax advantages.

• Unlimited growth potential.

• Personal liability protection

• Ease of formation.

Which type of business ownership is most suitable for raising large amounts of capital?

• Sole proprietorship

• Partnership

• Corporation

• Limited liability company