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WorksheetsUnit 2 Test (Business)
Total questions: 20
Worksheet time: 13mins
Why is a Sole Proprietorship the easiest ownership structure to set up?
Government papers are easy to fill out
You don't have to fill out Government papers
You and your business partner share work
Your employees do the work for you
What are the seven ownership structures?
LLC, Sole Proprietorship, Corporation, Partnership, Cooperative, Limited Partnership, Non-profit
Sole Proprietorship, LCL, Corporation, Partnership, Cooperative, Limited Partnership, Non-profit
Sole Proprietorship, LLL, Corporation, Partnership, Cooperative, Limited Partnership, Non-profit
Sole Proprietorship, LCB, Corporation, Partnership, Cooperative, Limited Partnership, Non-profit
What is a partnership
A business owned by you
A business that doesn't make profit
A business owned by you and your friend
A business that files Government paper with your friend to legally become business partners
What is the purpose of a non-profit?
To create Profit
Raise money for a good cause
To earn a fixed amount of cash in a year
To Raise money for personal use
Which organization is a non-profit?
Walmart
Target
Salvation army
Wendy's
Check all Advantages of a Sole Proprietorship
No Government paperwork
Complete control
Receive 100% of profit
No Limited Protection
Check all Disadvantages of a Sole Proprietorship
Pass Through taxation
No Limited Liability protection
Owner reports income and loses
Liable for any obligations
Check all Advantages of a Partnership
No Government paperwork
No Limited Liability protection
Pass through taxation
Share profit
Check disadvantages of a Partnership
No Limited Liability protection
Share profit
Share decision making
Pass through taxation
Check Disadvantages of a Corporation
Expensive
filing Fees
Corporate Formalities
No government paperwork
A is a business owned by two or more people
(a)
What are the two easiest types of business to set up?
Partnership, Corporation
LLC, non-profit
Sole Proprietorship, Partnership
LLC, Corporation
Why do you want personal liability protection?
Personal assets are protected
The money you earn is used for a good cause
Investors profits are not at risk
Why does the government not tax non-profits?
They are lazy
They have enough money
non-profits are made for a good cause
The President said so
What does it mean that the owners of an LLC are a separate legal tax entity?
They don't use personal tax returns to pay tax on corporate profits
They use personal tax returns to pay tax on corporate profits
The structure limits personal liability
What do you need to consider when selecting what ownership structure is best for your business?
The type of business
how many owners
where will the business be located
How much money would it cost to start
What is the main benefit of an LLC?
The structure limits the owner's personal liability for business debt
Investors private profits are not at risk
It raises money for a good cause
Personal assets are protected
Does a Partnership become a Corporation after papers are filed?
Yes
No
How is a Partnership formed?
(a)
Both a Corporation and a Non-profit corporation get taxed
True
False
