Business Ownership Types Quiz

What is one advantage of forming a corporation?

• Lower setup costs

• Fewer government regulations

• Protection from personal liability

• Ability to set up without legal assistance

Which business structure may involve double taxation?

• Sole proprietorship

• Partnership

• Corporation

• S corporation

Fill in the blank: The easiest and most common form of business ownership for small business owners is ____.

• Partnership

• Corporation

• Sole proprietorship

• Limited liability company

What type of legal responsibility do business owners have to address employee on-the-job injuries?

• Flexible contracts

• Worker’s compensation

• Corporate shares

• Safety training

What is the BEST way to protect personal property from business financial obligations?

• Register the business name and patent the logo

• Establish an IRA and set up automatic withdrawals

• Seek legal counsel and choose the right legal structure

• Hire an accountant and enroll in online banking.

What type of insurance protects a business from claims of wrongdoing?

• Exchange of Value

• Professional

• General liability

• Small business

What legal action protects personal assets from business liabilities?

• Incorporation

• Investments

• Contract

• Compliance

What principle ensures each party signing a contract has the authority to enter it?

• Legal purpose

• Mutual consent

• Consideration

• Capacity

What aspect of ownership is addressed by the question, 'Do you care if other owners can take over if you are not involved?'

• a) Continuity

• b) Capital needs

• c) Risk

• d) Profits

Fill in the blank: The type of insurance that protects a business from claims of wrongdoing is ________.

• Exchange of Value

• Professional

• General liability

• Small business