Business Structure Quiz

If you have this business structure, the business is taxed as part of the owner's taxes, not as a separate entity (two answers)

• Sole Proprietorship

• Non-Profit

• Corporation

• Partnership

• Franchise

Which of the following is an ADVANTAGE of a partnership?

• Don't have to pay taxes

• Specialization

• Personally liable

• Double taxation

Which of these CAN sell shares on the stock market?

• Sole Proprietorship

• Partnership

• LLC

• Corporation

Maude wants to own a business but is nervous because she's never done it before. She is also afraid of risk. But she wants the excitement of running a business from day to day. The best structure for her would be:

• Franchise

• Non-Profit

• Sole Proprietorship

• Corporation

• LLC

John makes cupcakes in his home and sells them to his neighbors and friends. He decides to make it official and quickly does the easy required paperwork, naming his business, "Jonnycakes." What is his structure?

• Franchise

• Partnership

• Sole Proprietorship

• Corporation

• LLC

John's business is doing great! But he's not so good at the financial end of it. He takes on his friend Jemma to do the financial end of the business. Jemma doesn't want to be an employee. She adds $10,000 of her own money to the business. The business is a:

• Sole Proprietorship

• Corporation

• Partnership

• LLC

• Franchise

As Jonnycakes grows, Jemma and Johnny want to be less liable for the debts of the company. They have hired many employees and built three stores. Although they would like to retain control of the company, they also want to make the company its own legal entity. So they form a:

• LLC

• Franchise

• Corporation

• Partnership

• Non Profit

30 years later, Johnny is old and tired and Jemma is dead. Johnny's children do not want to run the business but still want it to stay in the family. The business is really big now and has 50 stores all over the United States. Johnny's children form a board to run the business from here on out and sell shares in the ownership. It is now a:

• LLC

• Franchise

• Partnership

• Non Profit

• Corporation

Non-Profit organizations do not make any revenue.

• True

• False

Which of the following is most likely a non-profit?

• A Church

• A shoe store

• A hospital

• A social media app