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WorksheetsForms of Ownership
Total questions: 30
Worksheet time: 23mins
In this form of ownership, the owner has unlimited liability and enjoys all of the profits
Sole Proprietor
Partnership
Corporation
Franchise
Why is it a good idea to create a partnership agreement?
ALL are correct.
To separate the business, if necessary
To have a dispute resolution plan
In case of the untimely death of a partner
What is the most significant risk factor in a sole proprietorship?
Having no regular schedule
Doing all of the work
Having to answer to a board of directors
Unlimited liability, even for employee actions
How are taxes handled in a partnership form of business ownership?
The business passes only its profits to the owners, and they claim the profits on their personal tax return.
The business passes its profits and losses to the owners, and they claim the profits and losses on their personal tax return.
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The business passes its profits and losses to the owners, and they claim the profits and losses on their sole proprietorship tax return.
What is the main disadvantage of being a sole proprietor?
High start up costs
Limited skills
Unlimited liability
A sole proprietorship is taxed only once.
false
True
The simplest form of business ownership is a:
proprietorship.
partnership.
corporation.
cooperative
The main disadvantage of a general partnership is:
the unlimited liability of the partners.
disagreement amongst partners.
shared management.
difficulty of termination
Disadvantages of this type of business include: parent company is strict, you are limited in what you sell, and you must operate like every other franchise.
Sole Proprietorship
Partnership
Corporation
Franchise
How is a corporation different from a sole proprietorship or partnership?
A corporation has only one or two owners.
A corporation is usually owned by one person.
A corporation requires a legal charter with the state.
The owners (stockholders) have limited liability.
No paperwork (charter or agreement) is required to start which type of business?
Partnership
Franchise
Sole Proprietorship
Corporation
Which type of business allows the owner to keep all of the profit for him/herself?
Partnership
Franchise
Sole Proprietorship
Corporation
