Business Forms 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 group of people with limited liability

• A business owned by shareholders

Which of the following is a characteristic of a Partnership?

• Unlimited liability

• Shares traded on the stock market

• Owned by one person

• No legal distinction between the owner and the business

What is a Limited Liability Company (LLC)?

• A business structure where the owners have unlimited liability

• A business structure where the owners have limited liability

• A business owned by a single individual

• A business where profits are distributed according to shares

In a Cooperative, who are the owners?

• Shareholders

• Government

• Members/Users

• A single proprietor

Which form of business organization typically has the simplest tax requirements?

• Limited Liability Company

• Partnership

• Sole Proprietorship

• Cooperative

What is a key advantage of a Partnership over a Sole Proprietorship?

• Limited liability

• More capital available

• No need for registration

• Profits are not taxed

Which of the following is NOT a characteristic of a Limited Liability Company (LLC)?

• Limited liability for owners

• Profits taxed at the company level

• Flexibility in management

• Owners are called members

In which type of business organization do the owners have the least amount of personal liability?

• Sole Proprietorship

• Partnership

• Limited Liability Company

• Cooperative

What is the main goal of a Cooperative?

• To make a profit for its shareholders

• To provide services or goods to its members at cost

• To expand globally

• To monopolize the market

Which form of business organization allows for the easiest transfer of ownership?

• Sole Proprietorship

• Partnership

• Limited Liability Company

• Cooperative