Chapter 5

The corporation is the most common form of business ownership.

• True
• FALSE

The three major forms of business ownership in the U.S. are sole proprietorships, partnerships, and corporations.

• True
• FALSE

Few people today start their own business.

• True
• FALSE

Once a business is established, it's almost impossible to change from one form of business ownership to another.

• True
• FALSE

When two or more people legally agree to become co-owners of a business, the form of business is called a partnership.

• True
• FALSE

A legal entity with authority to act and have liability separate from its owners is called a partnership.

• True
• FALSE

Corporations represent 20 percent of all the businesses in the U.S. and earn 81 percent of the total U.S. business receipts.

• True
• FALSE

A comparison of the three major forms of business ownership shows that sole proprietorships are usually the most difficult type of business to establish.

• True
• FALSE

The first step in starting a sole proprietorship is to fill out a proprietorship charter application form and file it with the state government.

• True
• FALSE

It is usually easy to start and end a sole proprietorship.

• True
• FALSE