Crash Course Business: Entrepreneurship Quiz

What is the first step in transforming a side-hustle into a recognized business?

• Legally registering your business

• Hiring employees

• Getting your first customer

• Creating a business plan

Which business structure is the easiest to start but offers no personal liability protection?

• Sole Proprietorship

• Partnership

• Corporation

• LLC

In a General Partnership, how is liability shared?

• There is no personal liability

• All partners share personal liability equally

• Only one partner has unlimited liability

• Liability is limited to the amount invested

Which type of partnership involves silent partners who are only responsible for a slice of the business assets?

• Sole Proprietorship

• Limited Partnership

• General Partnership

• Limited Liability Partnership

What is a major benefit of forming a C-Corp?

• Easy to form with minimal paperwork

• No need to pay taxes on profits

• Owners are personally liable for business debts

• Ability to sell stock to the public

Which type of corporation focuses on social good and allows the CEO to make decisions for social benefit?

• LLC

• B-Corp

• C-Corp

• Nonprofit

What is a key advantage of an LLC?

• Unlimited liability for owners

• No need for any legal agreements

• Pass-through status for taxes

• Double taxation on profits

In a cooperative (co-op), how are decisions made?

• By the CEO alone

• By a board of directors without input from stockholders

• By the largest investor

• By stockholders voting on all decisions

What is the primary purpose of a nonprofit corporation?

• To avoid paying any taxes

• To provide a service or product for profit

• To maximize profits for stockholders

• To do charity, education, religious, literary, or scientific work

What is a common source of funding for nonprofits?

• Silent partners

• Personal loans from owners

• Government grants

• Selling stock to the public