Business Organization Quiz

How many owners does a sole proprietorship have?

• Two or more

• No owners

• One

• It varies

What is a characteristic of a partnership?

• Two or more owners

• No owners

• One owner

• Owned by shareholders

Which type of business organization is considered a legal entity similar to an individual in the eyes of the law?

• Sole Proprietorship

• Partnership

• Corporation

• Non-profit organization

Which type of business organization may have a large or small number of employees?

• Sole Proprietorship

• Partnership

• Corporation

• Cooperative

How many people are involved in a sole proprietorship?

• More than one

• Two

• One

• It varies

What is a cost associated with a sole proprietorship?

• Limited liability

• Easy to get start-up or expansion financing

• Responsible for all decisions and all debts

• Income/profits taxed at business rates

Which of the following is a benefit of a sole proprietorship?

• Difficult to get start-up or expansion financing

• Income/profits taxed at business rates

• Receives all benefits, profits and income

• Requires a complex structure to start

Which of the following is a benefit of a partnership?

• Unlimited liability

• Shared decision-making

• Difficult to get start-up or expansion financing

• Income/profit taxed at personal income rates, not business rates

What is one of the costs associated with a partnership?

• Can rely on partner’s expertise

• Relatively easy to start

• May have differences of opinions or disagreements

• Shared decision-making

What must partners in a partnership decide when one person wants to leave or close down the business?

• How to divide the responsibilities

• What to do with the remaining assets

• What to do with the company name

• What to do when one person wants to leave or close down