Business and SEM Quiz

What is the primary benefit of forming a sole proprietorship?

• Ability to raise millions in funding

• Shared decision-making

• Total control of the business

• Limited liability

What type of ownership is most attractive to investors seeking rapid growth?

• Sole proprietorship

• Corporation

• Franchise

• Partnership

Which ownership type offers the least liability protection?

• Corporation

• LLC

• Sole proprietorship

• Joint venture

If a business owner wants to protect personal assets, which structure is best?

• Partnership

• Sole proprietorship

• Corporation

• Freelance model

Why might a bakery remain a sole proprietorship?

• To raise stock

• To grow internationally

• To maintain personal control

• To reduce costs on licensing

Which of the following is true about LLCs?

• They sell stock to the public

• They offer unlimited liability

• They combine liability protection with flexible ownership

• They are required for all medical practices

A business needing millions of dollars in funding should choose:

• Sole proprietorship

• Partnership

• Corporation

• Nonprofit

What’s a major downside of sole proprietorships when it comes to funding?

• Too many investors

• Stockholder conflicts

• Viewed as risky by lenders

• Hard to start

What kind of business ownership is most appropriate for a tech startup?

• Franchise

• Sole proprietorship

• Partnership

• Corporation

A law firm is most likely to operate as a:

• Sole proprietorship

• LLC or partnership

• Franchise

• Joint venture