Unit 3, Lesson 1 Structures Quiz

Which type of business structure is easiest to establish?

• C-Corp

• LLC

• Sole proprietorship

• B-Corp

What is a disadvantage of starting a sole proprietorship?

• You are personally liable

• You have to pay more taxes

• It’s harder to start up

• You’re subject to more government regulations

Which type of business structure can have limited liability for some partners?

• Sole proprietorship

• General partnership

• Limited partnership

• Corporation

What is a non-profit organization?

• A business model where an individual operates a business under the name and system of a larger company.

• A payment made by one party to another for the right to use an asset.

• A member-owned business organization for mutual benefit.

• An entity that operates for purposes other than making a profit.

What is a disadvantage of a corporation?

• Lower taxes

• Must pay personal income tax AND business income tax

• No taxes

• Only business income tax

What is a cooperative?

• A business that seeks to make a profit

• A group of individuals forming a company for everyone’s benefit

• A sole proprietorship

• A partnership

What is a nonprofit organization?

• A business that seeks to make a profit

• A business that does not seek to make a profit

• A sole proprietorship

• A partnership

Which type of business organization is owned by two or more people?

• Sole Proprietorship

• Partnership

• Corporation

• Franchise

What are the different types of structures for business we learned?

• Sole Proprietor

• Corporation

• Partnership

• All of the above

Which business structure is characterised by limited liability and separate legal identity?

• Sole proprietorship

• Partnership

• Corporation

• Cooperative