Business Ownership Quiz

Why is it important to understand different forms of business ownership?

• A) To control the company's cleaning gutters

• B) To share the risks and expenses with someone

• C) To choose a form that suits the business's unique needs and objectives

• D) To make movies or design video games

Which of the following is NOT one of the four forms of business ownership mentioned in the text?

• A) Sole proprietorship

• B) Partnership

• C) Corporation

• D) Co-operative

What is the main reason personal circumstances, financial needs, and the type of business are important when starting a business?

• A) They determine the company's location

• B) They affect tax, liability, and owner-ship control

• C) They decide how many employees to hire

• D) They influence the company's name

What is one of the objectives listed in the lap reading 1.05

• A) Discuss the importance of cleaning gutters

• B) Explain the most common forms of business ownership in a private enterprise system

• C) Make movies or design video games

• D) Establish a legal form of ownership for personal circumstances

What is a sole proprietorship?

• A business owned by two or more people.

• A business with limited liability.

• A business owned by one person who assumes all profits and risks.

• A business where debts can be paid by taking some or all of each partner's personal assets.

Which of the following is a characteristic of a sole proprietorship?

• Business and individual taxes are not separated.

• It requires a large amount of capital to get started.

• It is typically owned by more than 50 people.

• Owners cannot obtain start-up funds from private investors or bank loans.

What is a partnership?

• A business where the owner has unlimited liability.

• A business owned by one person and has limited liability.

• A business that is owned by two or more people.

• A business where individual taxes are separated from business taxes.

What is the common form of partnership where each partner has unlimited liability?

• Limited partnership

• Sole proprietorship

• General partnership

• Corporation

What does limited liability in a partnership mean?

• Partners are not responsible for any debts.

• Partners have to invest a large amount of capital.

• Partners' personal assets are protected up to the amount they invested.

• All partners have equal responsibility regardless of their investment.

According to the U.S. Supreme Court, how is a corporation defined?

• A group of people working towards a common goal

• An artificial being, invisible, intangible, and existing only in contemplation of the law

• A partnership between various stakeholders

• A government-regulated business entity