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WorksheetsBP 5.2 Terminology Forms of Business Ownership
Total questions: 19
Worksheet time: 10mins
What type of liability does a sole proprietor have?
Limited
Unlimited
Private
Which of these is a benefit of being partnership?
There are more ideas in the business
The owners have to give away a share of the business profits
There is unlimited liability
Which type of legal structure is used when two or more people join together to start a business and have unlimited liability?
Sole trader
Partnership
LTD
PLC
Which legal structure would an individual wishing to start-up a small business choose because it is quick, easy and inexpensive to set up?
Sole proprietorship
Partnership
LLC
Joint venture
Which of the following is a disadvantage of setting up a business as a partnership?
Shared losses
Shared workload
Shared profit
More ideas generated
If you buy a franchise, you are a(n)
franchisor
franchise
agent
franchisee
Which of these are owned by shareholders?
corporation
sole proprietorship
partnership
A business with one owner is known as a:
Company
Sole Proprietor
Partnership
Advantages of a sole proprietor are:
Limited liability
The owner makes all the decisions
The owner takes all the profit
Can raise substantial capital
Advantages of a partnership are:
The partners split the profit
Unlimited liability
Raise more capital than a sole proprietor
Share the workload
Which of the following best describes the term limited liability corporation? If the business fails:
Personal possessions of the owner can be taken to pay any debts
The owner is personally liable for all the debts of the business
There is no limit on the amount the owner has to pay to settle debts
The owner only loses the amount invested in the business
Two Brothers Pizza would most likely show which type of ownership
Partnership
Corporation
Stock and Bonds
Single Ownership
A partnership agreement details the rules and procedures that guide ownership and operations and will typically identify the business name, investments, and other contributions of each partner.
True
False
A(n) ________________ is a written contract granting permission to operate a business to sell products and services in a set way.
franchise
partnership agreement
franchisee
articles of incorporation
These types of business ventures are free from corporate income tax and typically work in areas such as education, health care, charity, or the arts.
non-profit corporations
sole proprietorships
partnerships
LLCs
