Economics Review

What is a Sole Proprietorship?

• A business where 2 or more people share ownership
• A business owned by shareholders
• A business that is owned by one individual

Which of the following is an advantage of sole proprietorship?

• Owner has complete control
• Cannot raise capital
• Owner gets all the stress
• All the Above

A sole proprietorship is easier and less costly than starting any other form of business

• True
• False

Partnership requires at least three people.

• True
• False

In partnership, decisions require agreement.

• True
• False

Business owned by stockholders is

• Partnership
• Corporation
• Sole Proprietorship
• Franchise

A group of people who jointly oversee the activities of a corporation

• Employees
• Board of Directors
• Volunteers
• None of the above

________ is one in which at least one partner is not involved in the day-to-day running of business and is liable only for the funds he or she has invested.

• General Partnership
• Limited Partnership
• Limited Liability Partnership
• Partnership

________ shares of ownership in the corporation.

• Dividend
• Company
• Stock

Which is not a disadvantage of starting a corporation?

• start up cost and effort
• heavy regulation
• limited funds
• double taxation