Section 1 - Business Organizations - Per 4*

Which of the following is a type of business ownership where a single individual owns and operates the business?

• Corporation

• Partnership

• Sole Proprietorship

• Limited Liability Company (LLC)

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What is one major advantage of a sole proprietorship?

• Limited liability

• Easy to establish and dissolve

• Double taxation

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Which of the following is a disadvantage of partnerships?

• Limited liability

• Double taxation

• Unlimited liability

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In a Limited Liability Company (LLC), who is protected from personal liability for business debts?

• Only the managers

• Only the owners

• Both owners and managers

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Which of the following is a negative of a corporation?

• Unlimited liability

• Double taxation

• Perpetual existence

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What is a franchise?

• A business model where a company allows individuals to operate using its brand and business model such as McDonald's and Domino's Pizza

• A partnership between two companies

• A type of corporation with limited liability

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Which of the following is the most common type of business ownership?

• Sole Proprietorship

• Partnership

• Corporation

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What is one disadvantage of a partnership?

• Easy to establish

• Shared profits

• Single taxation

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Which type of business ownership is characterized by having shareholders?

• Sole Proprietorship

• Partnership

• Corporation

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What is one key difference between an LLC and a corporation?

• LLCs have unlimited liability

• Corporations are easier to establish

• LLCs are easier to establish

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