What is a sole proprietorship?

What is a sole proprietorship?

• A. A business owned and managed by multiple individuals who share profits and losses.

• B. A business owned and managed by a corporation.

• C. A business owned and managed by one individual who receives all profits and bears all losses.

• D. A business owned by the government.

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

• Unlimited liability

• Long hours

• Receive all profit

• Limited capital

What is a disadvantage of a sole proprietorship?

• Easy to start

• Lower taxes

• Make all decisions

• Have to deal with all the problems

Which of the following is a characteristic of a sole proprietorship?

• No business partners

• Limited liability

• High taxes

• Easy to start

What does "unlimited liability" mean in the context of a sole proprietorship?

• The owner is not responsible for the business debts.

• The owner has limited responsibility for the business debts.

• The owner is fully responsible for all the business debts.

• The business has a separate legal entity.

What is a partnership in business?

• A. A business owned and managed by a single individual

• B. A business owned and managed by 2 or more individuals who receive all profits and bear all losses

• C. A business owned by the government

• D. A business that does not aim to make a profit

What is a partnership agreement?

• A. An agreement between the partners for how the business will run

• B. A document that lists the employees of the business

• C. A contract with suppliers

• D. A marketing strategy plan

Why is a partnership agreement considered a legal document?

• A. It is written in legal language

• B. It will be upheld in court if there is a disagreement between partners

• C. It is signed by a lawyer

• D. It is filed with the government

Which of the following is an advantage of a partnership?

• Decision making could be difficult

• More business skills/knowledge

• Split profits

• Unlimited Liability

Which of the following is a disadvantage of a partnership?

• More capital resources

• Less stress

• Communication

• Lower taxes