Principles Unit 3 Types of Business Ownership Review

What is business ownership?

• The process of selling products

• The individual or groups which own a business and its legal entities

• The act of marketing a business

• The process of hiring employees

Which of the following is NOT included in business ownership?

• A) Determining which type of business fits the needs of the owner

• B) Securing financing

• C) Naming the company

• D) Cooking meals

Fill in the blank: Legal Entity is a law which allows a group of people to conduct business as a single unit – for example: a ________ ownership.

• group

• sole

• private

• public

Which of the following is a way to become a business owner?

• Starting a new business

• Purchasing a franchise

• Purchasing an existing business (non-franchise)

• Taking over family business

• All of the above

Which of the following is NOT a type of business form?

• Sole proprietorship

• Partnership

• Corporation

• Employment

Fill in the blank: A sole proprietorship is owned and operated by ________.

• one individual

• a group of investors

• a board of directors

• the government

• a corporation

Sole proprietorship is the most common form of business ownership.

• True

• False

Which of the following is an advantage of business ownership?

• Harder to raise money to expand the business

• Relatively simple with less taxes and government regulations

• Unlimited liability

• Higher start-up cost

Which of the following is a disadvantage of business ownership?

• Entitlement to all profits of the business

• Easy to maintain business confidentiality

• Unlimited liability

• Relatively easy to start

Fill in the blank: One advantage of business ownership is ________ to all profits of the business.

• entitlement

• exposure

• restriction

• obligation