Business Structures

John and Sarah decide to start a bakery together. What is this form of business ownership called?

• Sole Proprietorship

• Company

• Partnerships

At Tech Innovations Inc., the major policy and financial decision makers are determined by the...

• CEO/GM/President

• Chairman of the board

• Shareholders

• Board of Directors

Can a sole trader like Sarah, who runs a bakery, operate her business under a name different from her own personal name?

• Yes

• No

Imagine you want to start a business that designs and sells custom furniture. You're considering different business structures and want one where you won't be personally liable for business debts beyond what you've invested. Which business structure ensures that the business is a separate legal entity from its owners, and the owners are only liable for the amount they've invested in shares?

• Partnership

• Sole Trader

• Limited Liability Company

• Franchise

In the United States, a general partnership structure

• pays income tax directly on its profits

• does not pay income tax; profits are taxed on the partners' personal tax returns

Before launching a new financial product, a fintech startup must be registered with

• ASX

• ACCC

• ASIC

• APRA

In a small tech startup partnership, there are normally between

• 2-10 members

• 2-20 members

• 2-50 members

A tech startup, TechInnovate Inc., has contractual capacity to enter into contracts with anyone including its own members

• True

• False

Can a sole trader, who runs a small bakery in town, hire more than 3 employees to help with the increasing demand?

• Yes

• No

Imagine John and Sarah decide to start a bakery business together. This type of business arrangement is known as a partnership. Legally, this partnership is

• not a separate legal entity

• a separate entity

• similar to a company