Lesson 2: Business Entities Quiz

Which of the following is a type of business entity?

• Franchise

• Sole proprietorship

• Cooperative

• Non-profit organization

What is a characteristic of a partnership?

• Owned by one person

• Owned by two or more people

• No liability protection

• Taxed as a corporation

Which business entity offers limited liability to its owners?

• Sole proprietorship

• Partnership

• Limited liability company (LLC)

• Cooperative

Which business entity is the simplest form of business ownership?

• Corporation

• Partnership

• Sole proprietorship

• Limited liability company (LLC)

Which business entity is often used by professionals like lawyers and accountants?

• Sole proprietorship

• Partnership

• Corporation

• Limited liability company (LLC)

Which type of business entity is most likely to have a board of directors?

• Sole proprietorship

• Partnership

• Corporation

• Limited liability company (LLC)

Which business entity is often chosen for its tax flexibility?

• Sole proprietorship

• Partnership

• Limited liability company (LLC)

• Corporation

In a sole proprietorship, who receives all the income and is taxed at the personal rate?

• The government

• The owner

• The employees

• The shareholders

Who is liable for business debts in a partnership?

• The government

• The employees

• The owners

• No one

What type of legal protection does a Limited Liability Company (LLC) offer?

• Less than a corporation

• Same as a partnership

• Same as a corporation

• None