WorksheetsChapter 25
Total questions: 10
Worksheet time: 5mins
In a sole proprietorship, how many people are responsible for the business?
one
one or more
at least two
any number
Which of the following is not an advantage of a sole proprietorship?
no partners to split profits with
unlimited liability
inexpensive to set up
business income and costs are reported on the owner's personal tax return
Which type of business legal structure has "double taxation?"
nonprofit corporation
sole proprietorship
limited liability company
C corporation
Which type of business legal structure exposes its owner(s) to unlimited liability for its owners?
sole proprietorship
C corporation
nonprofit corporation
all of the above
Which advantage(s) does a general partnership have over a sole proprietorship?
more than one person for financial backing
it has a lower tax rate
limited liability
all of the above
What disadvantage(s) does a general partnership have over a sole proprietorship?
partners may have trouble agreeing on policies
each partner is responsible for the business actions of the others
profit is split between the partners
all of the above
A nonprofit corporation
uses its profits to help society
is also called a cooperative
does not protect its owners from liability
all of the above
Sole proprietorships with employees are required to have
tax I.D. number
tax I.D. number and EIN
EIN
none of the above
Even if you are best friends with your business partner, you should always
register a sole proprietorship
incorporate
use a partnership agreement
none of the above
The owners of a cooperative business are its members who
are employed by the business
use the services of the business
buy the goods of the business
all of the above
