Types of Business

A form of business organization with one owner who takes all the risks and all the profit is called - 

• partnership

• proprietorship

• corporation

• governorship

A form of business organization with two or more owners who share the risks and the profits - 

• proprietorship

• corporation

• wholesale

• partnership

A form of business organization that is authorized to act as a legal entity regardless of the number of owners. 

• corporation 

• sole proprietorship

• partnership

• distributor

What kind of business is BEST described by these statements?
I am the only owner of my business. 
I take all the risks of doing business. 
I keep all the profits. 

• sole proprietorship

• corporation

• partnership

• cooperative

What is a disadvantage of partnerships?

• ease of formation

• owners share responsibilities

• limited liability

• possibility of personality conflict

How are sole proprietorships and partnerships alike?

• Contracts are needed to start the businesses.

• Owners have complete control of the business.

• Owners have limited legal liability.

• The businesses are owned by one person.

How is a corporation different from a sole proprietorship?

• Corporations are owned by only one person

• Corporations can sell stock to raise money for the business. 

• Sole proprietorships have limited liability for the owners.

• Sole proprietorships require a legal charter to start the business.

What percentage of the profits in sole proprietorship is the owner designated to?

• 75%

• 100%

• 54%

• 0%

A sole proprietorship is easier and less costly than starting any other form of business.

• Ture

• False

Business owned by shareholders is

• Partnership

• Sole proprietorship

• Corporation

• Franchise