Business Sectors Quiz

Businesses operate in which two sectors?

• The public sector and the private sector

• The public sector and the corporate sector

• The private sector and the corporate sector

• The government sector and the private sector

Which business structure allows the owner to have full control over the business decisions?

• Corporation

• Partnership

• Sole Proprietorship

• Cooperative

Which of the following is NOT a pro of a sole proprietorship?

• Owner enjoys the privilege and flexibility of being the sole decision maker

• Business and wealth generated can be kept in the family

• Limited capital and ability to expand

• Personal contact maintained with staff and customers

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

• Owner has personal control over the direction of his business

• Lack of continuity

• Personal contact maintained with staff and customers

• Business and wealth generated can be kept in the family

What is a con of a sole proprietorship regarding losses?

• Losses are shared among partners

• Owner bears all the losses

• Losses are covered by insurance

• Losses are minimal

Which of the following is a pro of a sole proprietorship related to control?

• Control is shared among partners

• Control is limited to a board of directors

• Owner has personal control over the direction of his business

• Control is determined by a majority vote

What is a disadvantage of a sole proprietorship in terms of business continuity?

• High continuity

• Lack of continuity

• Guaranteed continuity

• Continuity is shared among partners

Which of the following is NOT a pro of a sole proprietorship?

• Easy to form with small amount of start-up capital required

• Owner has personal control over the direction of his business

• Limited capital and ability to expand

• Personal contact maintained with staff and customers

What is a partnership in business?

• A business owned by one person

• A business owned by two or more people who share its risks and rewards

• A business owned by a corporation

• A business owned by the government

What type of document is a partnership agreement?

• A lease

• A contract

• A memorandum

• A proposal