Business Structure Quiz for Students

Which type of business offers the best chance for quick decision-making?

• Sole proprietorship

• General partnership

• Limited partnership

• Corporation

Day-to-day operations within a corporation are most likely controlled by the company's

• proprietors

• president and vice presidents

• stockholders

• board of directors

Which of these is an advantage of a sole proprietorship?

• It is recognized as a separate legal entity

• The owner does not have to share the profits of the business with anyone else

• The proprietor does not have to pay income taxes for the business

• It is easy to attract qualified employees

This form of business provides limited liability for the owners.

• Proprietorship

• General partnership

• Corporation

• Sole proprietorship

People who invest in a corporation by purchasing stock are known as

• shareholders

• partners

• proprietors

• managers

Which type of business structure is typically the easiest to establish?

• Corporation

• Sole proprietorship

• Limited partnership

• General partnership

In a general partnership, who is responsible for the debts of the business?

• Only the managing partner

• All partners equally

• Only the partner who incurred the debt

• The partnership as a separate entity

Which business structure is most likely to face double taxation?

• Sole proprietorship

• General partnership

• Corporation

• Limited partnership

Which of the following is a disadvantage of a corporation?

• Limited liability

• Double taxation

• Ease of raising capital

• Perpetual existence

Which type of business entity allows for the easiest transfer of ownership?

• Sole proprietorship

• General partnership

• Corporation

• Limited partnership