Business Ownership and Franchise Quiz

Which type of business ownership is associated with public ownership?

• Sole Proprietorship

• Partnership

• Corporation

• LLC Corporation

Which of the following is a con of a Limited Liability Company (LLC)?

• Easy startup

• Hard to raise outside capital

• No additional federal taxes

• Protected from liability

What is one of the benefits of forming a Limited Liability Company (LLC)?

• Higher startup costs

• Self-employment taxes

• Easy startup

• Hard to raise outside capital

Which of the following is a benefit of a Limited Liability Company (LLC)?

• Hard to raise outside capital

• Higher startup costs

• No additional federal taxes

• Self-employment taxes

What is one of the pros of forming a Limited Liability Company (LLC)?

• Hard to raise outside capital

• Higher startup costs

• Protected from liability

• Self-employment taxes

What does "double taxation" mean for a corporation?

• Taxed once on profits

• Taxed twice on profits and dividends

• No taxes

• Taxed only on dividends

What does the term "going public" imply for a corporation?

• Becoming a private entity

• Selling stock to the public

• Closing the business

• Reducing the number of stakeholders

What can members of a cooperative buy to be part of decision-making?

• Bonds

• Stocks

• Shares

• Real estate

What is a key feature of the governance in a cooperative?

• Dictatorship

• Elected board

• Monarchy

• Corporate hierarchy

A business owned by only one person

• Partnership

• Franchise

• Corporation

• Sole Proprietorship