Entrepreneurship Midterm Exam Review 2

Which of the following is a type of business ownership owned and operated by one person?

• Franchise

• Sole Proprietorship

• Limited Liability Company (LLC)

• Joint Venture

What type of business ownership is characterized by having limited liability for its owners?

• Partnership

• Sole Proprietorship

• Limited Liability Company (LLC)

• Nonprofit

Which type of business ownership is typically focused on charitable or social purposes rather than profit?

• Corporation

• Partnership

• Nonprofit

• Sole Proprietorship

In which type of business ownership do two or more individuals share management and profits?

• Corporation

• Partnership

• Limited Liability Company (LLC)

• Nonprofit

What is a key characteristic of a sole proprietorship?

• Shared responsibility for debts

• Business income is taxed as personal income

• Decision-making is shared

• More access to capital than sole proprietorship

Which of the following is a benefit of a partnership?

• Sole decision-making power

• All profits go to the owner

• Shared responsibility

• Often rely on personal savings for funding

In a sole proprietorship, who is liable for all business debts and obligations?

• The government

• The employees

• The owner

• The partners

What is a benefit of a sole proprietorship?

• Combine skills and knowledge

• Tax benefits

• Decision-making is shared

• More access to capital

How is decision-making handled in a partnership?

• Sole decision-making power

• Decision-making is shared

• Decision-making is outsourced

• Decision-making is automated

What is a key characteristic of a corporation?

• Shareholders have limited liability

• Profits are passed to members

• Decision-making varies based on member structure

• More difficult to get capital than for corporations