Sole Proprietorship and Partnership

What is the main characteristic of a Sole Proprietorship?

• Owned by two or more partners

• Owned by the government

• Owned by a corporation

• Owned by one person

What is the main source of fund for Sole Proprietorship from the given text?

• Trade Credit

• Personal Savings

• Loans

• Partners' Capital

What is the main characteristic of a Partnership?

• Owned by the government

• Owned by two or more partners

• Owned by a corporation

• Owned by one person

What is the main type of partner who has limited liability and is not involved in daily operations?

• Nominal Partner

• Sleeping/Silent Partner

• Limited Partner

• General Partner

What is the main advantage of a Sole Proprietorship?

• Shared Responsibility

• Unlimited Liability

• Easy Decision Making

• Shared Profits

What is the main disadvantage of a Partnership?

• Unlimited Liability

• Easy Decision Making

• Shared Responsibility

• Shared Profits

What is the main characteristic of a Limited Partner?

• Fully responsible for the business and its debts

• Has limited liability and is not involved in daily operations

• Contributes capital but has no involvement in decision-making

• Contributes only his or her name in setting-up the business

What is the main source of fund for Partnership from the given text?

• Personal Savings

• Loans

• Partners' Capital

• Trade Credit

What is the main advantage of a Partnership?

• Varied Skills

• Enjoys all Profit

• Disagreements

• Easy Decision Making

What is the main disadvantage of a Sole Proprietorship according to the text?

• Limited Resources

• Unlimited Liability

• Limited Expertise

• Shared Profits