10A Unincorporated Businesses Review

What is a sole proprietorship?

• A type of business structure where the business is owned and operated by a single individual.

• A business structure owned by multiple individuals

• A form of non-profit organization

• A type of government agency

What is a partnership?

• A partnership is a type of government organization

• A partnership is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed.

• A partnership is a type of solo business operation

• A partnership is a type of marriage contract

What is the main advantage of a sole proprietorship?

• Complete control over the business and receives all the profits

• No need to pay taxes

• Limited liability for the owner

• Shared control with other partners

What is the main advantage of a partnership?

• Shared decision-making and resources

• Limited access to resources

• Lack of flexibility in decision-making

• Unlimited liability for debts

What is the main disadvantage of a sole proprietorship?

• More tax advantages

• Easier to raise capital

• Limited personal liability

• Unlimited personal liability

What is the main disadvantage of a partnership?

• Ease of decision-making

• Disagreements and conflicts

• Limited liability

• Lack of flexibility

Which type of unincorporated business has the potential for unlimited liability?

• Corporation

• Nonprofit organization

• Limited liability company

• Sole proprietorship or partnership

What is the most common form of unincorporated business in the United States?

• Limited liability company

• Sole proprietorship

• Partnership

• Corporation

What is the key difference between a sole proprietorship and a partnership?

• Type of products sold

• Location of the business

• Size of the office space

• Number of owners