Econ_Weekly Quizizz_ Business Structures

Which of the following best defines a sole proprietorship?

• A business owned by two or more individuals.

• A business owned and operated by one individual.

• A business owned by shareholders.

• A business owned by a government entity.

In a sole proprietorship, which of the following is true regarding liability?

• The owner has limited liability, meaning their personal assets are protected.

• The owner has unlimited liability, meaning their personal assets are at risk.

• Liability is shared equally among all employees.

• There is no liability, as the business is considered separate from the owner.

Which of the following is a key advantage of a sole proprietorship?

• Ease of formation and low setup costs.

• Limited liability for the owner.

• Ability to raise capital through selling stock.

• Perpetual existence of the business.

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

• Complex tax filing requirements.

• Difficulty in obtaining financing due to perceived risk.

• Shared decision-making with partners.

• Extensive government regulations.

Which of the following is a common reason for a sole proprietorship to terminate?

• The owner decides to incorporate.

• The owner sells stock to raise capital.

• The owner retires or passes away.

• The business enters into a partnership.

Which of the following best defines a general partnership?

• A business owned by a single individual.

• A business owned by two or more individuals who share profits and liabilities.

• A business owned by shareholders.

• A business operated under a franchisor's brand.

In a general partnership, what type of liability do the partners have?

• Limited liability, protecting personal assets.

• Unlimited liability, meaning personal assets are at risk.

• Liability only for their initial investment.

• No liability, as the partnership is a separate entity.

A key advantage of a partnership compared to a sole proprietorship is:

• Lower taxes.

• Shared workload and expertise.

• Limited liability.

• Easier access to government grants.

Which of the following is a disadvantage of a partnership?

• Ease of formation.

• Shared resources.

• Potential for disagreements and conflicts among partners.

• Tax advantages over corporations.

What is a franchise?

• A business owned and operated by a single individual.

• A business owned by multiple partners.

• A business in which a franchisor grants a franchisee the right to operate under its brand.

• A government-owned business.