Paige and Bella 3/10/25

What is a proprietorship?

• A business with multiple owners sharing profits

• A business owned by the government

• A business with one owner who takes all risks and profits

• A publicly traded company

Which type of business organization involves two or more owners sharing risks and profits?

• Corporation

• Partnership

• Proprietorship

• Franchise

In a corporation, the owners' liability is limited to:

• Their total assets

• The company's total debt

• The amount of their investment

• Unlimited liability

An entrepreneur is someone who:

• Only works for large corporations

• Takes risks to produce and sell goods for profit

• Always works alone

• Never shares profits with others

How do entrepreneurs contribute to the economy?

• By eliminating competition

• By copying existing products only

• By decreasing technological progress

• By bringing new goods and services to market

Which business structure requires the most owners?

• Partnership

• Proprietorship

• Neither requires multiple owners

• Both require multiple owners

Entrepreneurs can establish their business as:

• Only a proprietorship

• Only a partnership

• Only a corporation

• Any of the three organizational structures

What is a key characteristic of a corporation?

• It must be owned by one person

• It acts as a legal entity

• It cannot make profits

• It must be government-owned

How do entrepreneurs affect competition in the market?

• They decrease competition

• They have no effect on competition

• They increase competition

• They eliminate all competition

Which statement about business organizations is true?

• All business types require multiple owners

• Only corporations can make profits

• All three types can be started by entrepreneurs

• Partnerships must have government approval