Small Business Quiz

What is a small business?

• A large corporation with many employees

• A privately owned enterprise with a small number of employees

• A government-owned entity

• A non-profit organization

What is a sole proprietorship?

• A business owned by multiple individuals

• A business owned and operated by a single individual

• A corporation with limited liability

• A partnership with shared responsibilities

What is an advantage of a corporation?

• Unlimited liability for shareholders

• Limited liability for shareholders

• No ability to raise capital

• No need for regulations

What is a disadvantage of a corporation related to regulations?

• No need for oversight

• Subject to more regulations and oversight

• No liability protection

• Limited ability to raise capital

Which business structure offers flexibility and liability protection, with options for taxation?

• Sole Proprietorship

• Limited Liability Company (LLC)

• General Partnership

• S Corporation

What is a tax identification number required for business operations and tax filing?

• Business Licenses and Permits

• Employer Identification Number (EIN)

• Disaster Assistance

• S Corporation

What are legal requirements that may include federal, state, or local permits for operating a business?

• Business Licenses and Permits

• Disaster Assistance

• Employer Identification Number (EIN)

• S Corporation

Which business structure provides limited liability protection and has options for taxation as a corporation or a partnership?

• Sole Proprietorship

• General Partnership

• Limited Liability Company (LLC)

• Nonprofit Organization

Which of the following is NOT a requirement for starting a small business?

• Obtaining an Employer Identification Number (EIN)

• Acquiring business licenses and permits

• Registering as a nonprofit organization

• Complying with tax obligations

What is a key disadvantage of a Sole Proprietorship?

• Limited ability to raise capital

• Unlimited personal liability for business debts

• Complex to establish

• Restricted to pass-through taxation