Legal Aspects of Business Organisation

What is a sole proprietorship?

• Limited liability

• Sharing of profits

• Single ownership

• More than 2 persons

What kind of business is BEST described by these statements?

I am the only owner of my business.

I take all the risks of doing business.

I keep all the profits.

• Partnership

• Cooperative

• Corporation

• Sole proprietorship

An entrepreneur is who

• enforces government regulations

• takes the risk to earn profit

• sets the interest rates at banks

• manages financial investments

A form of business organization that is authorized to act as a legal entity regardless of the number of owners.

• Company

• Partnership

• Sole proprietorship

• Distributor

What is a disadvantage of a partnership?

• Ease of formation

• Limited liability

• Owners share responsibilities

• Possibility of personality conflict

What type of business consists of two or more people?

• Sole proprietorship

• Company

• Partnership

• Franchise

Law firms, medical practices, and auto body repair shops are examples of what type of ownership?

• Sole proprietorship

• Franchise

• Partnership

• Corporation

What type of business structure is owned by many people?

• Company

• Sole proprietorship

• Partnership

• Firm

Nike, Fashion Valet, and Google are examples of

• Partnership

• Sole proprietorship

• Company

• Self business

One of the advantages of a sole trader business is that

• owners have limited liability

• decisions and responsibilities can be shared

• shares can be sold to raise capital

• the owner has complete control over decision making