NEW
Font size
S
M
L
XL
WorksheetsEcon CH8 L1 - Forms of Business
Total questions: 15
Worksheet time: 8mins
Name
Class
Date
1.
Describe a sole proprietorship.
a)
A sole proprietorship is a business owned and operated by a group of individuals.
b)
A sole proprietorship is a business owned and operated by a government entity.
c)
A sole proprietorship is a business owned and operated by a non-profit organization.
d)
A sole proprietorship is a business owned and operated by an individual.
2.
What is an advantage of sole proprietorships?
a)
Limited liability for the owner.
b)
Access to more capital for growth.
c)
Ability to share responsibilities and workload with partners.
d)
Complete control and decision-making power over the business.
3.
What is a disadvantage of sole proprietorships?
a)
Limited control over business decisions
b)
Personal liability for business debts and legal issues
c)
Ease of obtaining financing
d)
Tax advantages for the business owner
4.
What is a partnership?
a)
A partnership is a business structure where only one individual owns and operates a business.
b)
A partnership is a business structure where two or more individuals own and operate a business together, sharing profits and losses.
c)
A partnership is a business structure where individuals share profits but not losses.
d)
A partnership is a business structure where individuals own and operate separate businesses.
5.
List 2 types of partnerships.
a)
General partnership, Limited partnership
b)
Non-profit organization
c)
Corporation
d)
Sole proprietorship
6.
What is an advantage of a partnership?
a)
Limited liability for partners
b)
Individual decision-making and responsibilities
c)
Shared decision-making and shared responsibilities
d)
Higher tax burden for partners
7.
What is a disadvantage of a partnership?
a)
Ease of formation
b)
Unlimited liability
c)
Shared decision-making
d)
Limited liability
8.
Define a corporation.
a)
A corporation is a business owned and operated by a single individual.
b)
A corporation is a type of partnership where all partners have limited liability.
c)
A corporation is a legal entity that is separate and distinct from its owners.
d)
A corporation is a group of people who work together to achieve a common goal.
9.
Why do corporations sell stocks?
a)
To reduce their profits and revenue.
b)
To decrease their market value and reputation.
c)
To increase their liabilities and debts.
d)
To raise capital or funds for their business operations and expansion.
10.
What is a dividend?
a)
A dividend is a payment made by a corporation to its creditors.
b)
A dividend is a payment made by a corporation to its shareholders.
c)
A dividend is a payment made by a corporation to its employees.
d)
A dividend is a payment made by a corporation to its competitors.
11.
List 2 types of stocks.
a)
Common stocks, Preferred stocks
b)
Blue chip stocks
c)
Government bonds
d)
Penny stocks
12.
Describe the main advantage of a corporation.
a)
Unlimited liability
b)
Lower taxes
c)
Less paperwork
d)
Limited liability
13.
What is a disadvantage of a corporation?
a)
Limited liability
b)
Ease of formation
c)
Flexibility
d)
Double taxation
14.
Define a Franchise.
a)
A franchise is a type of car
b)
A franchise is a type of sandwich
c)
A franchise is a business model that allows an individual or group to market a company's goods or services within a certain territory or location by paying an initial fee and ongoing royalties to the franchisor in exchange for the right to use the company's trademark, products, and business methods.
d)
A franchise is a type of computer software
15.
What is an advantage of a franchise?
a)
Having complete control over the business
b)
Benefit from an established brand name, proven business model, and support from the franchisor.
c)
No need to follow any guidelines or rules set by the franchisor
d)
No need to pay any fees or royalties
Reset
