Unit 3 Review

Which type of business structure is easiest to establish?

• B-Corp

• Sole proprietorship

• C-Corp

• LLC

What is a disadvantage of starting a sole proprietorship?

• You are personally liable

• You’re subject to more government regulations

• It’s harder to start up

• You have to pay more taxes

Which type of business is the most profitable, and why?

• A.      Corporations - because they can raise large amounts of capital and scale more effectively.

• A.      Partnerships - because they share costs and responsibilities among partners.

• A.      Sole proprietorships - because they are owned by one person who keeps all the profits.

• A.      Sole proprietorships - because they have lower tax rates than other business types.

What is a non-profit organization?

• A member-owned business organization for mutual benefit.

• A business model where an individual operates a business under the name and system of a larger company.

• An entity that operates for purposes other than making a profit.

• A payment made by one party to another for the right to use an asset.

What is a disadvantage of a corporation?

• No taxes

• Lower taxes

• Must pay personal income tax AND business income tax

• Only business income tax

A group of individuals forming a company for everyone’s benefit

• A business that seeks to make a profit

• A sole proprietorship

• A partnership

What is a nonprofit organization?

• A business that does not seek to make a profit

• A partnership

• A sole proprietorship

• A business that seeks to make a profit

Which type of business organization is owned by two or more people?

• Partnership

• Corporation

• Franchise

• Sole Proprietorship

Which business structure is characterised by limited liability and separate legal identity?

• Sole proprietorship

• Partnership

• Cooperative

• Corporation

Which business structure is the most profitable?