Business Ownership Quiz

What is a sole proprietorship?

• A business owned by two or more people

• A business owned by one person

• A business owned by a corporation

• A business owned by a limited liability company

What is a partnership?

• A business owned by two or more people

• A business owned by one person

• A business owned by a corporation

• A business owned by a limited liability company

What is the main disadvantage of a sole proprietorship?

• Limited liability

• Double taxation

• Unlimited personal liability

• Complex paperwork

What is the main advantage of a partnership?

• Limited liability

• Double taxation

• Unlimited personal liability

• Operational flexibility

What is a limited liability company (LLC)?

• A business owned by two or more people

• A business owned by one person

• A hybrid between a partnership and a corporation

• A separate legal entity from its owners

What is a corporation?

• A business owned by two or more people

• A business owned by one person

• A hybrid between a partnership and a corporation

• A separate legal entity from its owners

What is the main disadvantage of a corporation?

• Limited liability

• Double taxation

• Unlimited personal liability

• Complex paperwork

What is the main advantage of an LLC?

• Limited liability

• Double taxation

• Unlimited personal liability

• Operational flexibility

What are some factors to consider when choosing a form of business ownership?

• Taxes, liability, control, financing, and paperwork

• Taxes, liability, control, and financing

• Taxes, liability, control, and paperwork

• Taxes, liability, and control

Who can provide guidance in choosing the right form of business ownership?

• Business counselors

• Attorneys

• Accountants

• All of the above