Forms of Ownership

Which form of ownership typically involves a single individual owning and managing the business?

• Close Corporation

• Sole Proprietorship

• Partnership

• Personal Liability Company

1. Who makes decisions in a Sole Proprietorship? 

•  The Board of directors 

• The Members

• The Shareholders 

• The Owner 

In a Sole Proprietorship, who receives all the profits and is responsible for all the decisions and debts?

• The government

• The individual owner

• The shareholders

• The members

1. Which of the following is a CHARACTERISTIC of a Sole Proprietorship? 

• Limited liability 

• Separate legal entity 

• Unlimited liability

• Dual taxation

Which of the following is an ADVANTAGE of a Sole Proprietorship?

• Separate legal entity.

• Ease of decision-making.

• Access to capital through loans.

• Limited liability protection for the owner.

1. Which of the following is a DISADVANTAGE of a Sole Proprietorship? 

• Unlimited liability 

• Limited control 

• Access to capital 

• Shared decision-making

Which form of ownership typically involves a formal agreement between two or more individuals?

• Franchise

• Close Corporation

• Partnership

• Sole Proprietorship 

How are profits and losses shared among the partners in a Partnership,?

• Profits are shared based on seniority within the partnership.

• Profits and losses are shared equally among partners.

• Profits and losses are shared based on the number of hours worked by each partner.

• Profits and losses are shared according to the partnership agreement.

1. Which of the following is NOT a CHARACTERISTIC of a Partnership? 

• Shared decision-making

• Shared profits and losses

• Limited liability

• Joint and several liability

Which of the following is NOT a DISADVANTAGE of a Partnership?

• Unlimited liability for partners

• Decision-making takes time

• Complex establishment process

• No legal personality and continuity