Forming a Business

What is the first step in forming a business?

• Registering the business name

• Creating a business plan

• Securing funding

• Hiring employees

Which of the following is a legal structure for a business?

• Sole proprietorship

• Partnership

• Corporation

• All of the above

What is a key advantage of forming a corporation?

• Unlimited liability

• Tax benefits

• Limited liability

• Simple to set up

Which document outlines the goals and strategies of a business?

• Business plan

• Articles of incorporation

• Operating agreement

• Shareholder agreement

What is the purpose of a business license?

• To protect the business name

• To legally operate in a specific location

• To hire employees

• To open a bank account

Which of the following is a disadvantage of a sole proprietorship?

• Limited liability

• Double taxation

• Unlimited liability

• Complex regulations

What is an EIN and why is it important for a business?

• Employee Identification Number, for hiring

• Employer Identification Number, for tax purposes

• Enterprise Identification Number, for branding

• Entity Identification Number, for legal status

Which type of business structure is owned by shareholders?

• Sole proprietorship

• Partnership

• Corporation

• LLC

What is a partnership agreement?

• A contract between partners outlining responsibilities

• A document filed with the state

• A tax form for partnerships

• A marketing strategy

Why is market research important when forming a business?

• To understand customer needs and competition

• To secure funding

• To hire employees

• To register the business