Types of Businesses Quiz- Practice

What is a business entity?

• A business that is owned by a group of people and is run for their mutual interest or benefit

• A business owned and operated by a single person

• A business providing intangible products

• An organization using economic inputs or resources to supply goods or services to consumers in exchange for cash or kinds

Which type of business provides intangible products?

• Merchandising business

• Manufacturing business

• Service business

• Corporation

What is another name for a merchandising business?

• Sole proprietorship

• Partnership

• Buy and sell business

• Service business

Which type of business is formed, owned, and operated by a single person?

• Sole proprietorship

• Partnership

• Multinational corporation

• Corporation

In which type of business do all partners bear unlimited liability?

• Limited liability company

• Franchise

• General partnership

• Corporation

Which type of business has separate legal personalities for the business organization and the owner?

• Cooperative

• Sole proprietorship

• Partnership

• Corporation

What is a characteristic of multinational corporations (MNCs)?

• They are small businesses

• They have limited liability

• They are owned by a single person

• They produce and sell products in various countries

Which type of business involves giving a percentage of the profit to the parent company in exchange for using the company’s name?

• Corporation

• Franchise

• Partnership

• Cooperative

What is required to form a limited liability company (LLC)?

• A single owner

• A written agreement

• A board of directors

• Unlimited liability

Which type of business is run for the mutual interest or benefit of its members?

• Sole proprietorship

• Corporation

• Franchise

• Cooperative