Business Structures Quiz

Which type of business is owned and operated by one person?

• Partnership

• Corporation

• Sole Proprietorship

• Limited Partnership

Which business type involves shared responsibilities and expertise?

• Sole Proprietorship

• Partnership

• Corporation

• Limited Partnership

In a general partnership, what do partners share?

• Limited liability

• Equal liability

• No liability

• Double taxation

What is a characteristic of a sole proprietorship regarding taxes?

• Lower taxes (taxed as personal income)

• Double taxation

• No taxes

• Shared taxes

What is an acquisition?

• One company buys another

• Two companies merge in the same industry

• Two companies merge at different stages of the supply chain

• Two companies merge in unrelated industries

What is risk-taking in the context of business?

• Avoiding any potential loss

• Investing time, money, and effort into ventures that may not always succeed

• Ensuring guaranteed success

• Minimizing all efforts

What is a tax advantage for small business owners?

• Higher tax rates

• No tax benefits

• Qualifying for certain tax breaks and deductions

• Paying more taxes than employees

What are the key components of a Business Plan?

• Only the executive summary

• The mission statement, objectives, market research, and financial plan

• The sales strategies alone

• The legal requirements

What is the role of a Business Plan in securing investors?

• It is not important

• It serves as a roadmap for success

• It only outlines the marketing strategies

• It focuses solely on financial projections

What is a key component of a comprehensive Business Plan?

• Only the mission statement

• Financial projections, marketing strategies, and business structure

• Only the goals

• Only the operational strategy