The 3 Basic Types of Business Ownership

A sole proprietorship is a:

• type of business owned and run by one person

• corporation with multiple shareholders

• partnership between two or more individuals

• non-profit organization

In a sole proprietorship, who is responsible for the business's debts?

• The owner of the sole proprietorship is personally responsible for the business's debts.

• The government is responsible for the business's debts.

• The business itself is responsible for its debts.

• The employees are responsible for the business's debts.

What is the main disadvantage of a partnership?

• Limited liability

• Double taxation

• Unlimited liability

• Easy transfer of ownership

What is a major benefit of a corporation?

• Limited liability for shareholders

• Higher tax rates

• Complex management structure

• Limited access to capital

In a corporation, what happens if the company owes money?

• The company must pay its debts.

• The company can ignore the debts.

• The company will receive more money.

• The company will dissolve immediately.

What are dividends?

• The % of profit a shareholder in a corporation receives.

• Taxes taken from shareholders.

• The money a corporation makes every month.

• The process of dividing up a corporation among shareholders.

Term used to descrobe someone who comes up with new products/services and creates new businesses based off of their new ideas.

Select the best definition from the following for the term: Sole Proprietorship

• A business owned by only one person.

• A business owned by two or more people.

• A business considered separate from the owners of the business by law. The owners are stockholders.

• A company that does business and has business facilities in many countries, such as McDonald's.

What is a corporation?

• A business owned between 2-3 people.

• A one-man show business.

• A recognized business that operates separately from its shareholders.

• A big building where business-people work.

A disadvantage of a corporation is...

• The owners of the corporation have a lot of responsibility.

• The money that is made has to be divided equally.

• They make too much money.

• The money gets taxes twice. The business gets taxed, then the personal income gets taxed.