Development of Famous Companies

Which business ownership option is characterized by being a separate legal entity owned by shareholders?

• Sole Proprietorship

• Partnership

• Corporation

• Hybrid

How can your choice of ownership affect your business?

• It can affect the business location

• It can affect taxation and government involvement

• It can affect the company's logo design

• It can affect the number of employees

What is a noted advantage of a sole proprietorship in terms of flexibility and decision-making?

• Decisions require board approval

• Ability to act quickly and make decisions

• Decisions are made by a committee

• Decisions are influenced by external consultants

What is a disadvantage regarding funding in a sole proprietorship?

• Funding is easily accessible

• Funding can be difficult to obtain

• Funding is unlimited

• Funding is not necessary

What is required to start a Sole Proprietorship?

• Special federal forms and tax identification number

• Obtaining local business license & permits

• Registering with the state commercial registry

• Creating a formal partnership agreement

What is one of the advantages of a partnership compared to a sole proprietorship?

• Limited access to resources

• Increased competition

• Greater financial resources

• Less responsibility sharing

What is an advantage of a partnership in terms of competition?

• Increased competition

• No change in competition

• Decreased competition

• Competition is not relevant to partnerships

What is one of the disadvantages of a partnership in terms of liability?

• Partners have limited personal liability for all the other partners

• Partners have unlimited personal liability for all the other partners

• Partners have no personal liability for the business debts

• Partners are only responsible for their own actions

Which of the following is a disadvantage of a partnership compared to a sole proprietorship?

• Partnerships have a more certain life than sole proprietorships

• Partnerships are easier to close down than sole proprietorships

• Partnerships are more difficult to close down than sole proprietorships

• Partnerships allow for individual decision-making without consultation

What is a potential interpersonal issue that can arise in a partnership?

• Partners may have conflicts

• Partners always work harmoniously

• Partners never share profits

• Partners can easily transfer their ownership