Sole Proprietorships Quiz

What is a sole proprietorship?

• A business owned and managed by multiple people

• A business owned and managed by one person

• A business owned and managed by a government

• A business owned and managed by a corporation

What are some advantages of sole proprietorship?

• Limited personal liability, easy access to resources, and tax benefits

• Full control, tax benefits, and easy to start

• Hard to get money, no help, and liability

• Unlimited personal liability, difficulty raising capital, and challenges delegating

What are some disadvantages of sole proprietorship?

• Limited personal liability, easy access to resources, and tax benefits

• Full control, tax benefits, and easy to start

• Hard to get money, no help, and liability

• Unlimited personal liability, difficulty raising capital, and challenges delegating

What is the biggest disadvantage of sole proprietorship?

• Limited personal liability

• Difficulty raising capital

• Challenges delegating

• Lack of performance

What authorization do sole proprietors need to run a business?

(Select all that are correct)

• Business license from the city government

• Special license from the state

• Site permits for the building

• Registering the business name

What is the biggest disadvantage of unlimited personal liability?

• Difficulty raising capital

• Challenges delegating

• Limited access to resources

• Lack of performance

What is the biggest challenge in finding and keeping good employees?

• Limited life of the business

• Limited access to resources

• Lack of fringe benefits

• Unlimited personal liability

What is the main reason for the limited life of a sole proprietorship?

(Select all that apply)

• Owner retiring

• Owner dying

• No one willing to buy or run the business

• Lack of performance

Based on the graph, how many of the 80 new sole proprietorships would you expect to still be in business after three years?

• 80

• 60

• 40

• 20

Based on the provided graph, what is the average size of most sole proprietorships?

• $10,000

• $100,000

• $500,000

• $50,000