Finance Unbox-ED ($) - Grade 6-8 - Session 017 - Quiz 1

Select the statement that is true about sole proprietorships

• Sole proprietorship is the simplest and most common form of business
• One person called the sole proprietor is owner of the business
• Both of the above
• None of the above

Sole proprietors do not employ other people in the business and do everything themselves

• True
• False

Sole proprietors get to keep all the profits of the business

• True
• False

Sole proprietors are not personally liable for any losses in the business

• True
• False

Select the statement that is true about partnerships

• In a partnership three or more people come together to start a business
• Partnership should be formed by people who trust each other
• Both of the above
• None of the above

Partners must always share profit equally in a partnership

• True
• False

Partners must always share profit in the ratio of amount invested in the business

• True
• False

Partners can mutually agree any ratio to share profits of the business

• True
• False

Partners are personally liable for any losses in the business

• True
• False

Sleeping partner is a partner who provides capital for the partnership and has a profit share but does not participate in the day to day activities of the business

• True
• False