Business Ownership

A Sole Proprietorship is:

• a type of business owned and run by one person

• a partnership between two or more individuals

• a corporation with multiple shareholders

• a non-profit organization

A Partnership in terms of business ownership is:

• a type of business entity where two or more individuals manage and operate the business in accordance with the terms and objectives set out in a Partnership Deed.

• a business owned and operated by a single individual.

• a business entity that is separate and distinct from its owners.

• a business structure that offers limited liability to its owners.

The formation of a sole proprietorship varies by ______.

• state

• country

• city

• continent

What is one advantage of starting a business mentioned in the list?

• Financial independence

• Job security

• Fixed working hours

• Limited responsibility

A business owned and controlled by two or more people who have entered a written agreement is called a ________.

• Partnership

• Corporation

• Sole Proprietorship

• Franchise

What is one advantage of a partnership compared to a sole proprietorship?

• Less capital available

• More capital and credit available

• No shared management responsibilities

• Increased workload

What is one disadvantage of partnerships?

• Profits are shared.

• Decision making can be slow.

• Limited liability.

• Easier to raise capital.

What is one disadvantage of partnerships?

• Unlimited liability (depending on type).

• Limited access to capital.

• Complex decision-making process.

• Difficulty in transferring ownership.

Fill in the blank: In a General Partnership, a partner plays an active role and has ________ liability.

• unlimited

• limited

• conditional

• shared

Fill in the blank: One share of common stock equals one ____.

• vote

• dollar

• certificate

• bond