Business Structures Quiz

What is one of the formal business structures mentioned?

• Sole Proprietorships

• General Partnerships

• Corporations

• Informal Partnerships

What is the liability status of a sole proprietorship?

• Limited liability

• Unlimited liability

• No liability

• Shared liability

What is one characteristic of most sole proprietorships?

• They are government-owned

• They are large corporations

• They are small and generate little revenue

• They generate high revenue

Which of the following is an advantage of partnerships?

• High government regulation

• Pool resources and capital

• Disagreements between partners

• Unlimited liability

What is a disadvantage of partnerships?

• Easy decision-making

• Unlimited liability

• High corporate taxes

• Limited liability

What is one benefit of less government regulation in partnerships?

• Faster decision-making

• More legal disputes

• Higher taxes

• More paperwork

Which of the following is an advantage of having a franchise?

• No financial assistance

• Limited advertising

• Purchasing restrictions

• Management training and support

Which of the following is a benefit of national advertising programs in franchises?

• Limited marketing reach

• Greater brand recognition

• Higher costs for owners

• Increased local control

Why would the government create a monopoly?

• To encourage and promote innovation

• It creates them over industries it wants to control

• To help increase profits for corporations

• To improve market share

A sole proprietorship is owned by

• a single person

• a group of people

• investors and shareholders

• a married couple