Unit 1: Entrepreneurship Test Review

What is the most common form of business ownership?

• Partnership

• Corporation

• Sole Proprietorship

• Limited Liability Company

What percentage of all US businesses are sole proprietorships?

• 10%

• 30%

• 50%

• 70%

Which type of business ownership generally has greater freedom from government regulation?

• Partnership

• Corporation

• Sole Proprietorship

• Limited Liability Company

In a partnership, how are profits and losses generally split?

• Equally among partners

• Based on percentage of ownership

• Only the managing partner receives profits

• Profits and losses are not split

What is the main advantage of a corporation?

• Limited liability

• Easier to raise capital

• Full control over the business

• Less government regulation

What is the main disadvantage of a sole proprietorship?

• Limited liability

• Difficulty raising capital

• Shared management

• High government regulation

What type of corporation is owned by a few persons or a family?

• Public Corporation

• Closely held Corporation

• Limited Partnership

• General Partnership

What is the main advantage of buying an existing business?

• Built up goodwill and customer loyalty

• Easier to start small

• High level of commitment and loyalty

• Access to expert management

What is the main disadvantage of buying an existing business?

• Poor relationships with customers

• Trouble with suppliers

• Staff problems

• All of the above

What is the main advantage of a family business?

• Enjoy working with family members

• High level of commitment and loyalty

• Access to expert management

• Built up goodwill and customer loyalty