Businesses and Labor Force

What is a sole proprietorship?

• A business owned and managed by a single individual

• A business owned by multiple partners

• A corporation with shareholders

• A non-profit organization

What percentage of businesses are sole proprietorships?

• More than 70%

• Less than 50%

• Exactly 50%

• About 25%

In a sole proprietorship, who is responsible for all debts?

• The single owner

• The government

• The employees

• The shareholders

What is the Labor Force?

• Only Employed

• Nonmilitary people employed or unemployed

• All Military

• Only unemployed

What is one of the main characteristics of a sole proprietorship?

• Earns all profits and is responsible for all debts

• Shares profits with partners

• Limited liability

• Operates as a franchise

What is one advantage of a sole proprietorship?

• Easy to Start and End

• Unlimited Personal Liability

• Limited Access to Resources

• Lack of Permanence

What does a sole proprietorship require to start?

• Business License

• Partnership Agreement

• Corporate Charter

• Shareholder Meeting

Which of the following is NOT an advantage of a sole proprietorship?

• Full Control

• Limited Access to Resources

• Sole Receiver of Profit

• Relatively Few Regulations

Which of the following is a challenge faced by sole proprietorships?

• Lack of Permanence

• Full Control

• Sole Receiver of Profit

• Relatively Few Regulations

What is an advantage of having full control in a sole proprietorship?

• Decisions can be made quickly

• Increased access to resources

• Reduced personal liability

• Shared profits