Fall 2024 Entrepreneurship Topic 2 Quiz

1. What are the four types of business ownership?

• a. Sole Proprietorship, Partnership, LLC, Corporation
• b. Sole Proprietorship, Franchise, Cooperative, Corporation
• c. Partnership, LLC, S-Corporation, C-Corporation
• d. Sole Proprietorship, Partnership, Cooperative, Franchise

2. What percentage of businesses are sole proprietorships?

• a. 50%
• b. 60%
• c. 70%
• d. 80%

3. In a sole proprietorship, who receives all the profits earned by the business?

• a. The employees
• b. The government
• c. The investors
• d. The sole proprietor

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

• a. Owner is the boss
• b. Owner receives all profits
• c. Owner has unlimited liability
• d. Owner can act quickly in decision making

5. How many people are required to form a partnership?

• a. One
• b. At least two
• c. Exactly three
• d. At least four

6. Which of the following is NOT a type of partnership?

• a. General Partnership
• b. Limited Partnership
• c. Silent Partnership
• d. Exclusive Partnership

7. What is a benefit of a partnership compared to a sole proprietorship?

• a. Less paperwork
• b. Simpler tax filing
• c. Increased sources of capital
• d. Complete control over decisions

8. What does LLC stand for?

• a. Limited Liability Corporation
• b. Limited Liability Company
• c. Legal Liability Company
• d. Local Liability Cooperative

9. LLCs combine characteristics of which two business types?

• a. Sole proprietorship and corporation
• b. Partnership and corporation
• c. Franchise and corporation
• d. Cooperative and sole proprietorship

10. Which of the following is a disadvantage of an LLC?

• a. Double taxation
• b. Unlimited liability
• c. Self-employment tax for members
• d. Cannot have multiple owners