Types of Businesses 2

What is the main motivation for starting a sole proprietorship according to the document?

• High profits

• Be your own boss

• Low taxes

• Easy to get loans

What is one of the biggest challenges faced by sole proprietorships?

• High taxes

• Getting quality help

• Finding investors

• Expanding internationally

Which of the following is an advantage of a sole proprietorship?

• Limited liability

• Easy access to credit

• In charge and make all the decisions

• High startup costs

What is a disadvantage of a sole proprietorship?

• Limited liability

• Unlimited liability

• Easy access to credit

• High employee turnover

What is required to start a partnership?

• A business license

• A partnership agreement

• A bank loan

• A marketing plan

What percentage of businesses are partnerships?

• 10%

• 15%

• 5%

• 20%

Which of the following is an advantage of a partnership?

• Difficult to start

• Limited liability

• Easy to obtain capital

• Sole decision-making

What is a disadvantage of a partnership?

• Limited liability

• All partners share the risk

• Easy to dissolve

• Single ownership

What is a corporation?

• A company owned by a single individual

• A company that is registered by a state and operates apart from its owners

• A partnership between two or more individuals

• A non-profit organization

What percentage of businesses are corporations, and what percentage of revenue do they generate?

• 50% of businesses, 50% of revenue

• 10% of businesses, 90% of revenue

• 20% of businesses, 85% of revenue

• 30% of businesses, 70% of revenue