BEP Unit 1 Practice

Front

What type of business has only one owner?

Back

Sole Proprietorship

Answer explanation

A Sole Proprietorship is a type of business owned and operated by a single individual. Unlike partnerships or corporations, it has no legal distinction between the owner and the business.

Front

What type of business sells stocks/shares?

Back

Corporation

Answer explanation

A corporation is a legal entity that can sell stocks or shares to raise capital. Sole owners and partnerships do not have this capability, and schools are not businesses that sell shares.

Front

What type of business is Walmart considered?

Back

Corporation

Answer explanation

Walmart is considered a corporation because it is a large, publicly traded company that operates as a separate legal entity from its owners, allowing it to raise capital and limit liability.

Front

One benefit of a partnership is

Back

shared responsibility

Answer explanation

One benefit of a partnership is shared responsibility, as partners can divide tasks and collaborate, making it easier to manage the business. This contrasts with unlimited liability and other options that do not provide this benefit.

Front

Which organisation has a Board of Directors?

Back

Corporation

Answer explanation

A Corporation is a legal entity that has a Board of Directors responsible for overseeing its activities. In contrast, partnerships and single ownerships do not have such a governing body.

Front

A person who wants to control all aspects of a business should form this type of business.

Back

sole proprietorship

Answer explanation

A sole proprietorship allows one person to have complete control over all aspects of the business, making it the best choice for someone wanting total authority. In contrast, partnerships and franchises involve shared control.

Front

A disadvantage of a franchise would be...

Back

limited control

Answer explanation

A disadvantage of a franchise is 'limited control' because franchisees must adhere to the franchisor's rules and guidelines, restricting their ability to make independent business decisions.

Front

What type of business does not exist to earn revenue but to help others or serve a need in the community?

Back

non-profit

Answer explanation

A non-profit organization exists primarily to serve a community need or help others, rather than to generate profit. This distinguishes it from partnerships, corporations, and franchises, which are profit-driven.

Front

When one owner dies, the business usually ends. What type of business is it?

Back

Partnership

Answer explanation

A partnership typically ends when one owner dies, as the business is often tied to the individuals involved. In contrast, a Private Limited Company, Municipal Corporation, or Crown Corporation can continue beyond the life of an owner.

Front

Max's Cupcake Shop is probably an example of a ...

Back

Sole Proprietorship

Answer explanation

Max's Cupcake Shop is likely a Sole Proprietorship because it suggests a single owner running the business, which is typical for small shops. Partnerships and corporations involve multiple owners or shareholders, which doesn't fit this context.