WorksheetsTypes of Business Ownership
Total questions: 13
Worksheet time: 7mins
What is the definition of a small business?
A business with fewer than 100 employees
A business with fewer than 500 employees
A business with fewer than 50 employees
A business with fewer than 10 employees
What is a Limited Liability Partnership (LLP)?
A partnership with no liability for partners.
A partnership where liability is limited to the amount invested.
A sole proprietorship with limited liability.
A corporation with shared liability.
What type of business structure combines characteristics of a sole proprietorship and a partnership?
Corporation.
Limited Liability Company (LLC).
General Partnership.
Limited Partnership.
What type of partnership is associated with doctors' offices and law firms?
General Partnership.
Limited Liability Partnership.
Limited Partnership.
Sole Proprietorship.
What is a disadvantage of a C Corporation?
Limited liability
Double taxation
Unlimited shares
No public reporting
What is a benefit of an LLC over a C Corp for entrepreneurs?
Double taxation
Preferred structure for many years
Unlimited shares
Heavily regulated
What does "double taxation" mean in the context of a C Corp?
The company pays taxes twice a year.
The company and owners both pay taxes on income.
Only the owners pay taxes.
Only the company pays taxes.
What is the main advantage of a C Corporation in terms of shares?
Limited shares
Unlimited shares
No shares
Restricted shares
What is a common feature of a B Corp?
Traditional business structure.
Excludes public benefit.
Relatively new legal structure.
Focuses only on shareholder value.
What is the main advantage of a Non-Profit Corporation?
It can sell shares to the public
It receives special tax treatment
It has unlimited liability
It can operate without a board of directors
What is a characteristic of a Private Corporation?
Sells stock to the general public
Reports financial information publicly
Has a small group of owners
Experiences single taxation
In a Product Trade Name Franchise, what does the "franchisee" sell?
Their own products
A franchisor's specific line of products
Products from multiple brands
Only services
What is illegal about a Pyramid Scheme?
It sells high-quality products
It focuses on recruiting members
It operates as a sole proprietorship
It has a large number of owners
