Business Organization

How many owners does a Sole Proprietorship have?

• 2

• 2-3

• 1

• Many

Which of the following statements about a Sole Proprietorship is incorrect?

• Totally responsible for all debts and liabilities

• Get to keep all the profits

• Purpose is something other than making a profit

• Income is taxes as a personal income

In a partnership, how many owners are there?

• 1

• No Owners

• Has many shareholders

• 2 or more owners

Which of the following statements about a Partnership is incorrect?

• Owners share the profits and have a legal agreement

• You don't only take on your own debt, but your fellow business owner's debt

• Income is taxed as a personal income

• You can discontinue anytime you want

Why would someone set-up their business as a LLC?

• They double their profits

• Don't get taxed

• Protects their personal assets from the business's debt

• It's easier to start up because many owners are involved and bring in lots of money

What does LLC stand for?

• Liability Left Company

• Limited Liability Company

• Unlimited Liability Company

• It doesn't mean anything

What is the purpose of a Non-profit business structure?

• To gain as much profit as possible

• Taxed like a corporation

• To not make money

• A cause that is something other than making a profit

Which of the following statements about a Franchise is incorrect?

• Has no owners

• Required to sell goods and services a certain way

• A way to expand a business without the original owner having to open each business in all the different locations

• Business that was created for expanding an original business

True or False: A sole proprietorship can dissolve the company whenever the owner wants to?

• True

• False

Which form of business has many employees and the government keeps a close eye on them?

• LLC

• Non-Profit

• Corporation

• Partnership