#1 Business Ownership Quiz

What is the most common type of business ownership?

• Sole Proprietorship

• Partnership

• Corporation

• Limited Liability Company

What is the main advantage of a Sole Proprietorship?

• You are the boss.

• Shared start-up costs.

• Personal liability protection.

• Separation of personal and professional assets.

Olivia has started a small bakery business as a sole proprietorship. What is the main disadvantage she might face?

• She might face unlimited liability

• She might face disagreements with partners

• The business might need to answer to the board of directors

• She might face double taxation

Oliver is considering starting a Sole Proprietorship. What could be the disadvantage of his decision?

• Oliver might have limited financial resources.

• Oliver might face unlimited personal liability.

• David and Anika noticed that Oliver has a heavy workload.

• All of the above.

Elijah, Noah, and Avery are planning to start a business together. What would be the main advantage if they form a partnership?

• Shared responsibility

• Unlimited liability

• Double taxation

• Costly

James is considering starting a Sole Proprietorship. What could be the main disadvantage for him?

• He will have to share decision-making with Lily and Avery

• He will have unlimited personal liability

• He will have low start-up costs

• He will have to share profits with Lily and Avery

Charlotte, Maya, and Aiden are planning to start a partnership business. What could be the disadvantage they might face in their partnership?

• They might face unlimited personal liability.

• They might face conflict between each other.

• They might face difficulty in transferring ownership.

• All of the above.

Liam, Priya, and Noah are planning to start a business together. They are considering forming a Limited Liability Company. What would be the main advantage for them if they choose this type of business structure?

• They would face double taxation.

• They would have no liability.

• They would have flexibility in management.

• They would face disagreements.

Lily, Harper, and Samuel have decided to start a business together. What type of business structure is this?

• A business owned and operated by one individual

• A form of ownership that involves two or more owners

• A legal entity that is separate from its owners

• A corporation that operates to accomplish a special mission