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WorksheetsLesson 4 Types of Business & Ownership
Total questions: 12
Worksheet time: 6mins
Which type of business ownership provides
limited liability for the owner(s)?
corporation
sole proprietorship
general partnership
all of the above
One advantage of a general partnership over a
sole proprietorship is a general partnership
provides limited liability
is a corporation
provides unlimited liability
can rely on more than one person for financial
backing
Which of the following phrases best describes a
wholesaling business?
a business that converts materials into
products for sale
a business that sells products to final buyers
a business that performs services
a business that sells products to retailers
Most businesses in the United States are
corporations
partnerships
sole proprietorships
cooperatives
Over the past fifty years the American economy
has changed in what way?
manufacturing has replaced retailing as the
most dominant industry
service businesses have become far less
important to the economy
wholesaling has become the dominant
industry in the economy
service and trade businesses have become
the dominant industries
Which of the following statements about corporations
is true?
corporations are easier to set up than sole
proprietorships
a limited partnership is a type of corporation
corporations sell stock to raise money
a cooperative is a type of corporation
The businesses predicted to undergo the most
growth in the coming decade are
primarily service businesses
primarily manufacturing businesses
businesses that convert materials into
products
businesses that sell retail products to
wholesalers
A business owner with unlimited liability
could have to sacrifice personal money and
possessions to pay business debt
is not personally responsible for the debts
of the business
is a shareholder of a corporation
would not have to sacrifice personal money
and possessions to pay business debt
The purpose of a cooperative is
to earn proÿ ts for management
to benefit its members
to provide unlimited liability to its
members
to pay dividends to investors
One advantage of a corporation as compared to a
sole proprietorship is
a corporation is easier to set up and
requires less paperwork
a corporation provides limited liability for
its owners
a corporation has fewer shareholders
a corporation has a partnership agreement
A nonprofit corporation
provides unlimited liability to its members
provides limited liability to its members
is set up to make proÿ ts for its investors
is set up to pay dividends to its
shareholders
The special permit that allows retailers to purchase
goods tax-free from wholesalers and collect sales
tax from final buyers is called a
reseller’s permit
retailing permit
tax permit
wholesale permit
