Unit 3 Review

Front

Which type of business structure is easiest to establish? Options: B-Corp, Sole proprietorship, C-Corp, LLC

Back

Sole proprietorship

Front

What is a disadvantage of starting a sole proprietorship?

Back

You are personally liable

Front

Which type of business is the most profitable, and why? Options: Corporations - because they can raise large amounts of capital and scale more effectively. Partnerships - because they share costs and responsibilities among partners. Sole proprietorships - because they are owned by one person who keeps all the profits. Sole proprietorships - because they have lower tax rates than other business types.

Back

Corporations - because they can raise large amounts of capital and scale more effectively.

Front

What is a non-profit organization?

Back

An entity that operates for purposes other than making a profit.

Front

What is a disadvantage of a corporation?

Back

Must pay personal income tax AND business income tax

Front

A group of individuals forming a company for everyone’s benefit

Back

A partnership

Front

What is a nonprofit organization?

Back

A business that does not seek to make a profit

Front

Which type of business organization is owned by two or more people?

Back

Partnership

Front

Which business structure is characterised by limited liability and separate legal identity? Options: Sole proprietorship, Partnership, Cooperative, Corporation

Back

Corporation

Front

What is a cooperative?

Back

A business owned and operated by a group of individuals for their mutual benefit.