Business Types and Types of Business Ownership

A producer in the context of business is:

• a person or organization that creates goods or services

• a person who consumes goods or services

• a person who regulates the market

• a person who sells goods directly to consumers

Which of the following is an example of an intermediary business?

• Farmer

• Retail store

• Manufacturer

• Consumer

The main focus of a service business is:

• providing goods

• providing services

• manufacturing products

• selling technology

What percentage of new businesses fail within the first five years?

• 25%

• 50%

• 75%

• 90%

Name the three main types of business ownership.

• Sole Proprietorship, Partnership, Corporation

• Sole Proprietorship, Partnership, Franchise

• Corporation, Partnership, Cooperative

• Franchise, Cooperative, Sole Proprietorship

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

List two advantages of a Sole Proprietorship.

• Easy to establish and full control by the owner

• Limited liability and tax benefits

• Shared responsibility and easy to raise capital

• Complex regulations and high start-up costs

Which of the following is a disadvantage of a Sole Proprietorship?

• Independence

• Lower Taxes

• Personal Risk

• Less Government Regulation

A Partnership is:

• a type of business organization where two or more individuals manage and operate the business.

• a legal entity separate from its owners.

• a business owned and operated by a single individual.

• a large corporation with many shareholders.

One advantage of a Partnership is:

• Shared responsibility among partners

• Limited liability for partners

• No need for a partnership agreement

• Easier to raise capital than corporations