Business Ownership Quiz

Which of the following is a characteristic of a sole proprietorship?

• Unlimited liability

• Limited liability

• Double taxation

• Corporate formalities

Which form of ownership provides the owner with the greatest control over decision-making?

• Partnership

• Sole proprietorship

• Corporation

• Cooperative

Which type of business structure offers the advantage of limited liability but is taxed as a partnership?

• General partnership

• Sole proprietorship

• Limited liability company (LLC)

• Corporation

Which type of partnership includes at least one partner with unlimited liability and another with limited liability?

• General partnership

• Limited partnership

• Sole proprietorship

• Corporation

Which of the following is a disadvantage of a corporation?

• Unlimited liability

• Complex regulations and reporting

• Pass-through taxation

• Flexibility in management

Which of the following forms of ownership is most likely to face double taxation?

• Sole proprietorship

• Partnership

• Corporation

• Limited Liability Company (LLC)

In a sole proprietorship, the owner's personal assets are at risk due to which of the following?

• Limited liability

• Transferability of shares

• Unlimited liability

• corporate veil

Which form of ownership is easiest to establish with minimal legal formalities?

• Corporation

• Limited Liability Company (LLC)

• Partnership

• Sole proprietorship

Which of the following ownership structures is best for raising large amounts of capital?

• Corporation

• Sole proprietorship

• Partnership

• Limited liability company (LLC)

Who controls the day-to-day operations in a general partnership?

• Board of directors

• All partners

• A managing partner only

• Shareholders