TYPES OF BUSINESS 3GP MID REVIEW

What is the practice of making a living by producing or selling products?

• a) Economy
  

• 
  b) Business
  

• 
  c) Investment
  

• 
  d) Partnership

Who is the owner of a business?

• a) Manager
  

• 
  b) Investor
  

• 
  c) Proprietor
  

• 
  d) Consumer

Which of the following is NOT one of the three main types of business?

• a) Sole Proprietorship

• b) Corporation

• c) Government Agency

• d) Partnership

What is the main goal of a corporation?

• a) To provide jobs

• b) To maximize shareholder wealth

• c) To support small businesses

• d) To increase government revenue

What type of business allows its owners to share responsibility, profits, and losses?

• a) Sole Proprietorship

• b) Corporation

• c) Partnership

• d) Franchise
  

Which of the following businesses is an example of a sole proprietorship?

• a) Microsoft

• b) Local Barber Shop

• c) Law Firm

• d) FedEx

What is one advantage of a sole proprietorship?

• a) Easy to set up

• b) Shared control

• c) Limited liability

• d) Unlimited life

What is a major disadvantage of a sole proprietorship?

• a) No personal liability
  

• b) Difficult to raise capital

• c) Unlimited life

• d) Shared profits

Which of the following describes a sole proprietorship?

• a) The business and owner are separate legal entities

• b) One owner is responsible for everything
  

• c) Owners have limited liability

• d) It is owned by multiple shareholders

A partnership is a business owned by how many people?

• a) 1

• b) 2 or more

• c) 10 or more

• d) 50 or more