Lesson 3-6 Review

What accounts for the largest number of businesses in the United States?

• Non-profit organizations

• Corporations

• Partnerships

• Sole proprietorships

Which type of business organization has the smallest percentage of total net income?

• Limited Liability Companies (LLCs)

• Corporations

• Partnerships

• Sole proprietorships

What is required to operate a sole proprietorship with a fictitious name in Pennsylvania?

• A commercial license

• Registration with the Department of Revenue

• A federal tax ID

• A partnership agreement

What percentage of annual revenues do sole proprietorships account for?

• About 20-25%

• About 5-6%

• Less than 1%

• About 10-15%

What is a major drawback of being a sole proprietor?

• Personal liability for business debts

• Mandatory partnership

• Limited business name choices

• High tax rates

What is NOT an advantage of sole proprietorships?

• Ease of formation and dissolution

• Flexibility and adaptability

• Tax benefits

• Unlimited liability

What percentage of businesses do partnerships make up nationally?

• About 15%

• About 7%

• Less than 5%

• More than 20%

Which famous company started out as a partnership?

• Amazon

• Microsoft

• Apple

• Google

What is a limited partner's role in a partnership?

• Solely responsible for debts

• Mainly an investor with little say

• Full decision-making power

• Responsible for daily operations

What is a disadvantage of partnerships?

• Easy to dissolve

• Automatic tax benefits

• Unlimited liability for general partners

• No need for a DBA