Business Ownership Quiz

John owns a small bakery and is the sole owner of the business. What type of business ownership does John have?

• Corporation

• Partnership

• Limited Liability Company

• Sole Proprietorship

What is one advantage of a sole proprietorship?

• Limited liability

• Access to capital

• Complete control and decision-making power

• Separate legal entity

Emma and Sarah decide to start a clothing boutique together. What type of business ownership do they have?

• Sole proprietorship

• Partnership

• Limited liability company

• Corporation

What is one disadvantage of a partnership?

• Limited decision-making power.

• Difficulty in raising capital.

• Potential for conflicts between partners.

• Unlimited liability

ABC Inc. is a large company with multiple shareholders. What type of business ownership does ABC Inc. have?

• Privately held

• Sole proprietorship

• Partnership

• Publicly traded corporation

What is one advantage of a corporation?

• Tax advantages.

• Flexible management structure.

• Lower start-up costs.

• Limited liability

XYZ a software development company owned by one person. This person is NOT responsible for the organization's debt. What type of business ownership does XYZ have?

• Corporation

• Sole proprietorship

• LLC

• Partnership

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

• Limited personal liability

• Tax advantages

• Unlimited personal liability

• Complex legal structure

McDonald's is an example of what type of business ownership?

• partnership

• franchise

• corporation

• sole proprietorship

What is one advantage of a franchise?

• Proven business model and established brand

• Flexible working hours

• Lower startup costs

• Access to ongoing support and training