Business Entities Quiz

A limited partnership has at least one general partner with unlimited liability and one limited partner with:

• Management responsibilities

• Unlimited liability

• Limited liability

• Profit-sharing only

A cooperative is a business owned and operated by a group of people for their shared benefit. They are typically:

• For-profit

• Non-profit

• Publicly traded

• Owned by the government

A business entity owned and operated by one person is called a:

• Partnership

• Sole proprietorship

• Corporation

• Cooperative

A disadvantage of a corporation is:

• Double taxation

• Complex legal structure

• Lack of continuity

• All of the above

A major advantage of a corporation is:

• Ease of formation

• Limited liability for shareholders

• Shared decision-making

• Lower taxes

The main advantage of a sole proprietorship is:

• Limited liability

• Ease of formation

• Ability to raise large amounts of capital

• Shared decision-making

A business owned by two or more people who share in the profits and losses is called a:

• Sole proprietorship

• Partnership

• Corporation

• Cooperative

Cooperatives often distribute profits to members based on:

• Number of shares owned

• Patronage of the cooperative

• A combination of a and b

• No profit distribution

In a general partnership, all partners have:

• Limited liability

• Unlimited liability

• Management responsibilities

• Both b and c

Partnerships can be:

• General or limited

• Public or private

• For-profit or non-profit

• All of the above