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Business Structures

Total questions: 33

Worksheet time: 35mins

Name
Class
Date
1.
The profits and losses are shared between a few owners in this type of business.
a)
Company
b)
Social Enterprise
c)
Partnership
d)
Sole Proprietorship
2.

This type of business is considered a separate legal entity in the eyes of the law. It is owned by shareholders.

a)

Cooperative

b)

Corporation

c)

Partnership

d)

Sole Proprietorship

3.
Which of the following is not an advantage of a sole proprietorship?
a)
Easy to start
b)
Owner is their own boss
c)
Owner has unlimited liability
d)
Owner receives all the profits
4.
All individuals would be good at being their own boss, because we all like to do what we want.
a)
True
b)
False
5.
A partnership agreement:
a)
Helps prevent disagreements
b)
Encourages disagreements
c)
Is a waste of time
d)
None of the above
6.
One advantage of a partnership is that there are more sources of capital available than in a sole proprietorship.
a)
True
b)
False
7.
Susan, Phil, Robert, and Martina are all lawyers. After several years of working for big firms, they decide to pull their resources and start their own law practice together. The four of them will make all their business decisions together and will share all of the profits and financial risk. Their new law firm is a 
a)
partnership
b)
corporation
c)
sole proprietorship
d)
monopoly
8.

What is a form of business ownership in which 2 or more people jointly own a business

a)

Sole Proprietorship

b)

Corporation

c)

Partnerships

9.

The major policy and financial decision-makers of a corporation are determined by the...

a)

CEO/GM/President

b)

Chairman of the board

c)

Shareholders

d)

Board of Directors

10.

Name the entity that is a separate legal entity from its members, and these members are only liable for the cost of the shares they have purchased

a)

Partnership

b)

Sole Trader

c)

Limited Liability Company

d)

Franchise

11.

A partnership pays

a)

tax

b)

no tax

12.

A corporation has contractual capacity to enter into contracts with anyone including its own members

a)

True

b)

False

13.

A partnership as a business is

a)

not a separate legal entity

b)

a separate entity

c)

similar to a company

14.

Partnerships are popular in family businesses where individuals may enter into them with their spouse and children to minimize their tax

a)

True

b)

False

15.

This type of organization is a legal entity separate from its owners.

a)

Partnership

b)

Sole Proprietorship

c)

Corporation

d)

Franchise

16.

What is the name of a person who owns part of a corporation?

a)

Stakeholder

b)

Shareholder

c)

Trust Agent

d)

Chairman

17.

The owners share the risks and the profits

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

None of the above

18.

Advantage of this business is that owner keeps all the profit and is his own boss

a)

Partnership

b)

Sole proprietorship

c)

Corporation

d)

Franchise

19.

Which of these is a business with only one owner and is easy to form?

a)

Sole Proprietorship

b)

Partnership

c)

Limited Liability Company

d)

Corporation

20.

Sole proprietor's have how much liability?

a)

Double

b)

Single

c)

Unlimited

d)

Triple

21.

Who makes the decisions for a sole proprietorship?

a)

The single owner

b)

The partnership

c)

The board of directors

d)

The owner of the franchise

22.

Who makes the decisions for a partnership?

a)

The single owner

b)

The partnership

c)

The board of directors

d)

The owner of the franchise

23.

Who makes the decisions for an LLC?

a)

The single owner

b)

The partnership

c)

The board of directors

d)

The owner of the franchise

24.

Which business type MUST issue stock

a)

Sole Proprietorship

b)

Franchise

c)

Partnership

d)

Corporation

25.

If I wanted to work short hours and have an easy job, is a sole proprietorship for me?

a)

NO

b)

Yes

26.
-Owned by a single owner
-No separation between owner and business
-Unlimited personal liability
a)
Corporation
b)
Limited Liability Company
c)
Partnership
d)
Sole Proprietorship
27.
-Publicly traded company
-Governed by Board of Directors
-CEO, COO, CFO
-Stocks sold to raise capital
a)
Corporation
b)
Limited Liability Company
c)
Partnership
d)
Cooperative
28.
-One or more owners
-Limited personal liability
-Must be legally dissolved/reformed when ownership changes
a)
Partnership
b)
Limited Partnership
c)
Corporation
d)
Limited Liability Company
29.
-Two or more owners
-Unlimited Personal Liability
-No separation between owners and business
a)
Limited Partnership
b)
Corporation
c)
Cooperative
d)
Partnership
30.

Tim is a baker who owns his own business, pays all the bills, and gets to keep all of the profits.


What type of business organization is being described?

a)

Sole Proprietorship

b)

Corporation

c)

Partnership

d)

Entrepreneurship

31.

Margie and Seth decide to open a landscaping business together. These two owners will share the risks and the profits.


What type of business organization is being described?

a)

Sole Proprietorship

b)

Private Corporation

c)

Partnership

d)

Public Corporation

32.

Which type of business is authorized to act as a legal entity, regardless of the number of owners?

a)

Proprietorship

b)

Corporation

c)

Partnership

d)

Entrepreneur

33.

Which scenario best describes an entrepreneur?

a)

Colin has a wood shop and makes tables to sell for money.

b)

Curtis creates a new type of sports drink and wants to make a profit from it.

c)

Walmart has a lot of investors and everyone gets a profit.

d)

Jeremy and Brayden have a jet ski business and share profits.