Types of Business Ownership

It a SINGLE OWNERSHIP business.

• Partnership

• Sole Proprietorship

• LLC

• Corporation

In general partnerships, both owners invest their money, property, labor, etc.

• TRUE

• FALSE

General __________do not require a formal agreement. 

• partnerships

• person

• leaderships

The profits of the LLC are shared by the owners without double- taxation.

• TRUE

• FALSE

What kind of business is BEST described by these statements? "I am the only owner of my business. I take all the risks of doing business. I keep all the profits"

• Partnership

• Sole proprietorship

• Corporation

• Cooperation

What characterizes American business in terms of ownership and operation

• Publicly owned and government-operated

• Nonprofit and community-driven

• Private and profit-oriented

• Cooperative and employee-run

State 3 differences between a sole trader and a private limited company.

• Sole trader has unlimited liability while a private limited company has limited liability.

• A private limited company can continue in the event of the death of a shareholder whereas the sole trader will have to close down the business.

• For sole trader, the owner keeps all the profit, but the profit has to be shared amongst shareholders for a private limited company.

• All is correct.

Using examples of a sole trader and a public limited company, explain how the relationship between ownership and control differs in these two types of organisations.

• Sole trader business - single owner has complete control.

• Public limited company - the shareholders own the company, but the board of directors controls the company.

• Sole traders have unlimited liability while limited companies have the benefit of limited liability.

• All is correct.

Which type of business ownership involves two or more people sharing profits and responsibilities?

• Sole proprietorship

• Partnership

• Corporation

• Franchise

In which type of business ownership is the owner personally liable for all debts and obligations?

• Corporation

• Partnership

• Sole proprietorship

• Limited liability company