Unit 2 Forms of Business/Entrep/SBM Review for Test

Which of the following is NOT a form of business ownership?

• Sole proprietorship

• Partnership

• Corporation

• Cooperative

Which form of business ownership is characterized by limited liability for its owners?

• Sole proprietorship

• Partnership

• Corporation

• Franchise

What type of business ownership is typically formed by one individual?

• Sole proprietorship

• Partnership

• Corporation

• Limited Liability Corporations (LLC)

Which form of business ownership is a legal entity that is separate and distinct from its owners?

• Sole proprietorship

• Partnership

• Corporation

• Franchise

What is the name given to a business that is authorized to sell a company's goods or services in a particular area?

• Sole proprietorship

• Partnership

• Corporation

• Franchise

What percentage of businesses in the US are sole proprietorships?

• 50 percent

• 80 percent

• 30 percent

• 60 percent

Which of the following is an example of a sole proprietorship?

• A multinational corporation

• A local small shop

• A government agency

• A public limited company

What is a sole proprietorship?

• A type of business ownership where the government owns the business

• A type of business ownership where multiple people own the business

• A type of business ownership in which one person owns the business

• A type of business ownership that is owned by shareholders

Which of the following is an advantage of a sole proprietorship?

• High startup costs

• Complex management structure

• All profits go to owner

• Difficult to transfer ownership

What is one of the advantages of being a sole proprietor?

• You have to share profits with partners

• There is a lot of paperwork involved

• You are your own boss

• It is difficult to start