Understanding Types of Ownership

What is one of the simplest forms of business ownership?

• Sole proprietorship

• Partnership

• Cooperative

• Corporation

In a general partnership, how is responsibility for the business's debts and operations shared?

• Equally among all partners

• Only by the managing partner

• Based on the amount invested

• By the partner with the most experience

What is a key characteristic of cooperative ownership?

• Owned and operated by a group for mutual benefit

• Owned by a single individual

• Managed by a board of directors

• Operated for profit maximization

Which type of partnership allows some partners to have limited liability?

• Limited partnership

• General partnership

• Sole proprietorship

• Cooperative

What is a disadvantage of a sole proprietorship?

• Owner is personally liable for all business debts

• Complex to establish

• Requires a board of directors

• Limited decision-making power