W7CW: Business Types

What is a sole proprietorship?

• A business owned by multiple people

• A business owned by one person

• A type of corporation

• A government-owned business

Why might someone choose a sole proprietorship over a corporation?

• They want more personal liability

• They prefer more control and less complexity

• They want to raise capital through stocks

• They enjoy sharing profits

What is one major advantage of a sole proprietorship?

• Unlimited liability

• Full control over the business

• Complex tax requirements

• Limited resources

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

• Unlimited liability

• Limited control

• Complex tax requirements

• Requires a board of directors

Which statement best describes the liability in a sole proprietorship?

• Limited to the business's assets

• Unlimited liability

• Shared with partners

• Non-existent

What is one way a sole proprietor can finance their business?

• Selling shares

• Bank loans

• Government grants

• Partnership investments

What is a partnership?

• A business owned by one person

• A business owned by two or more people

• A government organization

• A type of non-profit

How does a partnership benefit from shared control?

• By having one person make all decisions

• By combining different skills and resources

• By eliminating financial risks

• By reducing the number of employees

In a partnership, what happens if one partner makes a bad decision?

• Only that partner is liable

• All partners share the consequences

• The business dissolves immediately

• It has no impact on the other partners

Which of the following is a disadvantage of a partnership?

• Shared resources

• Easy setup

• Liability for partner's debts

• Infinite life of the business