WorksheetsBig Quizizz- Forms of Business Ownership Take Home
Total questions: 62
Worksheet time: 31mins
Name
Class
Date
1.
What does GAAP stand for?
a)
Generally Accepted Accounting Principles
b)
Generally Available Access Protection
c)
Generally Accepted Attorney-Client Privilege
d)
None of these
2.
Corporations that declare stock splits usually do this when:
a)
The price/share of the company has increased
b)
The corporation wants to lower the per share price so that more investors are able to afford it
c)
The price/share of the company has decreased
d)
The corporation wants to increase the per share price so that more investors are interested in buying the stock
3.
When corporations declare 2:1 stock splits, ____
a)
The price/share of the company normally increases
b)
The number of shares doubles
c)
The price/share of the company normally decreases
d)
The number of shares is cut in half
4.
Sole proprietorships are the most popular form of business ownership, accounting for almost 3/4 of all businesses.
a)
True
b)
False
5.
True or False. Sole proprietorships are the most profitable form of business ownership, accounting for about 3/4 of all business revenue.
a)
True
b)
False
6.
True or False. Corporations are the most profitable form of business ownership, accounting for about 3/4 of all business revenue.
a)
True
b)
False
7.
True or False. In a sole proprietorship, the owner has limited liability.
a)
True
b)
False
8.
True or False. In a sole proprietorship, the owner has unlimited liability, meaning they are personally responsible for all debts, losses, and liabilities of the business.
a)
True
b)
False
9.
True or False: Partnerships are usually more complex to form than corporations.
a)
True
b)
False
10.
True or False. Partnerships are generally easier to form than corporations, because they have fewer legal requirements.
a)
True
b)
False
11.
Limited partners in a limited partnership have limited liability, meaning their liability is restricted to the amount of their investment in the business.
a)
True
b)
False
12.
True or False. Partnerships pay income taxes, similar to the way that corporations pay income taxes.
a)
True
b)
False
13.
True or False. Partnerships do not pay income taxes at the business level. Instead, profits and losses are passed through to the individual partners and reported on their personal income tax returns.
a)
True
b)
False
14.
True or False: Corporations have unlimited liability for their owners.
a)
True
b)
False
15.
True or False. The most a shareholder can lose is the price they paid for the stock they bought. This is called "limited liability."
a)
True
b)
False
16.
True or False: Stockholders in a corporation can easily transfer their ownership.
a)
True
b)
False
17.
True or False: The life of a corporation usually ends when its owners die or retire.
a)
True
b)
False
18.
True or False. Corporations live on after owners die or retire, because the shares in the corporation are inherited by other people.
a)
True
b)
False
19.
True or False. It is recommended to have a written partnership agreement to prevent later conflicts between partners.
a)
True
b)
False
20.
True or False. Limited partners in a limited partnership can become personally liable if they take an active role in the business.
a)
True
b)
False
21.
True or False. Sole proprietors have the flexibility to raise funds easily by selling stock.
a)
True
b)
False
22.
True or False. Sole proprietors do not have the option to sell stock; they typically rely on personal funds and loans.
a)
True
b)
False
23.
True or False. Corporations are subject to income taxes on their profits, and shareholders may also be taxed on dividends.
a)
True
b)
False
24.
True or False. Partnerships pay income taxes as separate entities.
a)
True
b)
False
25.
True or False. Partnerships do not pay income taxes themselves; instead, profits and losses are passed through to the individual partners, who report them on their personal tax returns.
a)
True
b)
False
26.
True or False. Franchisees operate under a recognized brand and product, which can reduce risk and increase the chances of success.
a)
True
b)
False
27.
True or False. Limited partners in a limited partnership are passive investors and do not participate in the day-to-day management of the business.
a)
True
b)
False
28.
True or False. Franchisees have complete control over their business operations.
a)
True
b)
False
29.
True or False. Franchisees must follow the franchisor's operating rules and standards, and this limits their control over certain aspects of their business.
a)
True
b)
False
30.
True or False. Sole proprietors can dissolve their business easily without involving co-owners.
a)
True
b)
False
31.
True or False. Partnerships can often raise funds more easily than sole proprietorships because they combine the financial resources of multiple partners.
a)
True
b)
False
32.
True or False. Corporations are subject to various government regulations, including registration and reporting requirements.
a)
True
b)
False
33.
True or False. The lifespan of a sole proprietorship can be uncertain and depends on the owner's decisions and circumstances.
a)
True
b)
False
34.
True or False. Limited partners who take an active role in management can lose their limited liability status.
a)
True
b)
False
35.
True or False. Franchisees are responsible for developing their own business concepts.
a)
True
b)
False
36.
True or false. Franchisees typically operate under an established business concept provided by the franchisor.
a)
True
b)
False
37.
Franchisors are typically _______.
a)
Sole proprietorships
b)
Partnerships
c)
Corporations
d)
All of these
38.
Franchisees can be _____.
a)
Sole proprietorships
b)
Partnerships
c)
Corporations
d)
Any of these
39.
True or False. Partnerships are commonly used by professional service firms like law and accounting firms.
a)
True
b)
False
40.
True or False. Sole proprietors have the advantage of limited liability protection.
a)
True
b)
False
41.
True or False. Corporations can transfer ownership by selling shares of stock, making it easier to change ownership.
a)
True
b)
False
42.
True or False. Franchisees often receive ongoing support and guidance from the franchisor to help them operate successfully.
a)
True
b)
False
43.
Which form of business ownership accounts for 15 percent of business revenues and involves shared ownership?
a)
a) Sole proprietorship
b)
b) Partnership
c)
c) Corporation
d)
d) Franchising
44.
What is the primary legal disadvantage of sole proprietorships?
a)
a) Limited liability
b)
b) Unlimited liability
c)
c) Tax complexity
d)
d) Inability to raise capital
45.
Which of these situtations do partnerhsips most often solve with insurance policies?
a)
a) Filing tax returns
b)
b) Calculating profits
c)
c) The death of a partner
d)
d) Inability to attract qualified employees
46.
Which type of partner in a limited partnership has unlimited liability but actively manages the business?
a)
a) General partner
b)
b) Silent partner
c)
c) Nominal partner
d)
d) Limited partner
47.
What do corporations most often do when they want to raise large amounts of capital to expand the business?
a)
a) Use an IPO
b)
b) Sell most of their assets
c)
c) The owners take out personal loans
d)
d) Reduce business expenses
48.
Which of these is the main reason that forming a privately-held corporation is more complex than forming a partnership?
a)
a) SEC reporting requirements
b)
b) State incorporation requirements
c)
c) Availability of capital
d)
d) Limited liability of owners
49.
Which of these is the main reason that managing a publicly-traded corporation is more or the complex than managing a privately-held corporation?
a)
a) SEC reporting requirements
b)
b) State incorporation requirements
c)
c) Availability of capital
d)
d) Limited liability of owners
50.
What form of business organization is often compared to a marriage?
a)
a) Corporation
b)
b) Partnership
c)
c) Sole proprietorship
d)
d) Franchising
51.
When people in the business world say "partnership", they normally mean a ______.
a)
Limited partnership
b)
General partnership
c)
Neither of these
52.
Which of the following is an advantage of franchises?
a)
a) Recognized name and product
b)
b) Management training and assistance
c)
c) Reduced risk for franchisees
d)
d) Financial assistance
e)
e) All of these
53.
What do franchise agreements typically include?
a)
a) Inventory levels and suppliers
b)
b) Facility design and branding
c)
c) Employee training programs
d)
d) All of the above
54.
What form of business is most common?
a)
Sole proprietorship
b)
General partnership
c)
Limited partnership
d)
Corporations
55.
What form of business accounts for about 80% of total business revenue?
a)
Sole proprietorship
b)
General partnership
c)
Limited partnership
d)
Corporations
56.
In a sole proprietorship, who gets to keep the profits from the business?
a)
a) Government employees
b)
b) Employees pf the business
c)
c) Business lenders
d)
d) Owner of the business
57.
In a sole proprietorship, who is responsible for all debts and losses?
a)
a) Government employees
b)
b) Employees pf the business
c)
c) Business lenders
d)
d) Owner of the business
58.
Which form of business ownership has the fewest legal requirements and is least expensive to form?
a)
a) Sole proprietorship
b)
b) General Partnership
c)
c) Corporation
d)
d) Limited lPartnership
59.
What is the main disadvantage of corporations concerning taxation?
a)
a) Double taxation of profits
b)
b) Double taxation of property values
c)
c) Higher sales tax rates
d)
d) Higher social security and medicare deductions
60.
If a corporation wants to allow another business to open a store that uses the corporation's business name and trademark to generate revenue, the two will normally use the ____ form of business.
a)
Franchise
b)
French fries
c)
Canadian bacon
61.
What is the key trade-off for limited partners in a limited partnership?
a)
a) They have limited liability but cannot actively participate.
b)
b) They have unlimited liability but can actively participate.
c)
c) They have limited liability and can actively participate.
d)
d) They have unlimited liability and cannot actively participate.
62.
In which form of business ownership are owners known as stockholders?
a)
a) Sole proprietorship
b)
b) General Partnership
c)
c) Corporation
d)
d) Limited Partnership
100 %
