Business Ownership Quiz

What is a sole proprietorship?

• A business owned by multiple people

• A business owned by one person

• A business owned by the government

• A business owned by a corporation

What is the oldest and most common form of business ownership?

• Limited liability company

• Partnership

• Corporation

• Sole proprietorship

What is a partnership?

• A business owned by the government

• A business owned by a corporation

• A business owned by one person

• A business owned by multiple people

What is a general partner in a partnership?

• A partner who has decision-making authority and unlimited liability

• A partner who does not take an active role in decision making

• A partner who takes an active role in the operation of the business

• A partner who has limited liability

What is an advantage of a General Partnership?

• Separate ownership and management

• Limited liability

• Ability to raise capital

• None

What is a corporation?

• A business organization that operates as a legal entity separate from its owners

• A business owned by multiple people

• A business owned by one person

• A business owned by a government

What is an advantage of a corporation?

• Shared profits

• Easy set-up

• Limited liability

• Total control

As a sole proprietor if you intend to hire more employees then EIN is needed,

• True

• False

Setting up a business as sole proprietor is easy because,

• One Owner

• Many paperwork

• More govt control

• Lack of govt control

There is "no legal seperation" in the partnership businesses.

• True

• false