IMR652 Quiz 2 Week 2-Business Structure

What is a sole proprietorship?

• A legal entity separate from its owners

• A business owned by a single individual

• A cooperative owned by its members

• A business owned by multiple individuals

Which of the following is an advantage of a partnership?

• Difficult to find a suitable partner

• Shared start-up costs

• Unlimited liability

• High regulatory burden

What is a key disadvantage of a corporation?

• Limited liability

• Easier to raise capital

• Extensive corporate records required

• Continuous existence

In a co-operative, how is control exercised?

• By a single owner

• Democratically, one member one vote

• By a board of directors

• By shareholders only

What is a key characteristic of a limited partnership?

• All partners must be involved in operations

• It is a non-profit organization

• Some partners have limited liability

• All partners are equally liable

Which type of business structure allows for the easiest capital raising?

• Corporation

• Co-operative

• Partnership

• Sole proprietorship

What is a disadvantage of a sole proprietorship?

• Limited liability

• Difficult to raise capital

• Democratic control

• Shared profits

Who are considered stakeholders in a business?

• Only the owners

• Only the employees

• Only the creditors

• Anyone with an interest in the business

What is a common feature of a corporation?

• Personal liability for debts

• Unlimited liability

• Separate legal entity

• No regulatory requirements

Which of the following is NOT a type of business structure mentioned?

• Sole proprietorship

• Limited liability partnership

• Non-profit organization

• Franchise