Q. In which business structure do owners have limited liability?
-
A.
Sole proprietorship
-
B.
General partnership
-
C.
Limited liability company (LLC)
-
D.
Joint venture
Solution
A limited liability company (LLC) provides limited liability protection to its owners.
Correct Answer:
C
— Limited liability company (LLC)
Learn More →
Q. In which form of business ownership do owners have limited liability?
-
A.
Sole proprietorship
-
B.
General partnership
-
C.
Limited liability company
-
D.
Joint venture
Solution
A limited liability company (LLC) provides limited liability protection to its owners.
Correct Answer:
C
— Limited liability company
Learn More →
Q. What is a common feature of franchises?
-
A.
Independent ownership
-
B.
Standardized products and services
-
C.
Unlimited liability
-
D.
No initial investment
Solution
Franchises offer standardized products and services while allowing independent ownership.
Correct Answer:
B
— Standardized products and services
Learn More →
Q. What is a common reason for choosing a franchise as a form of business ownership?
-
A.
Complete control over operations
-
B.
Established brand recognition
-
C.
Lower startup costs
-
D.
Unlimited liability
Solution
Franchises benefit from established brand recognition, which can lead to quicker customer acquisition.
Correct Answer:
B
— Established brand recognition
Learn More →
Q. What is a disadvantage of a corporation?
-
A.
Limited liability
-
B.
Double taxation
-
C.
Easier access to capital
-
D.
Perpetual existence
Solution
Corporations face double taxation, where both corporate profits and dividends to shareholders are taxed.
Correct Answer:
B
— Double taxation
Learn More →
Q. What is a disadvantage of a partnership?
-
A.
Limited access to capital
-
B.
Shared profits
-
C.
Complex formation process
-
D.
Unlimited liability
Solution
In a partnership, profits are shared among partners, which can be seen as a disadvantage.
Correct Answer:
B
— Shared profits
Learn More →
Q. What is a disadvantage of a sole proprietorship?
-
A.
Full control over business decisions
-
B.
Limited access to capital
-
C.
Simplicity in tax filing
-
D.
Direct profit retention
Solution
Sole proprietorships often have limited access to capital compared to other business forms.
Correct Answer:
B
— Limited access to capital
Learn More →
Q. What is a key characteristic of a corporation?
-
A.
Unlimited liability
-
B.
Limited lifespan
-
C.
Separate legal entity
-
D.
Direct taxation
Solution
A corporation is a separate legal entity, meaning it can own assets and incur liabilities independently of its owners.
Correct Answer:
C
— Separate legal entity
Learn More →
Q. What is a primary advantage of a sole proprietorship?
-
A.
Limited liability
-
B.
Ease of formation
-
C.
Access to capital
-
D.
Shared decision-making
Solution
A sole proprietorship is easy to form as it requires minimal legal formalities.
Correct Answer:
B
— Ease of formation
Learn More →
Q. Which business ownership form is best suited for raising large amounts of capital?
-
A.
Sole proprietorship
-
B.
Partnership
-
C.
Corporation
-
D.
Cooperative
Solution
A corporation can issue stocks to raise large amounts of capital from investors.
Correct Answer:
C
— Corporation
Learn More →
Q. Which business ownership form is typically the most complex to establish?
-
A.
Sole proprietorship
-
B.
Partnership
-
C.
Corporation
-
D.
Limited liability company
Solution
Corporations are the most complex to establish due to regulatory requirements and formalities.
Correct Answer:
C
— Corporation
Learn More →
Q. Which business structure is often chosen for its flexibility in management and taxation?
-
A.
Sole proprietorship
-
B.
Partnership
-
C.
Limited liability company (LLC)
-
D.
Corporation
Solution
A limited liability company (LLC) offers flexibility in management and pass-through taxation.
Correct Answer:
C
— Limited liability company (LLC)
Learn More →
Q. Which form of business ownership allows for shared profits and responsibilities?
-
A.
Sole proprietorship
-
B.
Partnership
-
C.
Corporation
-
D.
Franchise
Solution
In a partnership, profits and responsibilities are shared among partners.
Correct Answer:
B
— Partnership
Learn More →
Q. Which form of business ownership allows for shared responsibility and resources?
-
A.
Sole proprietorship
-
B.
Partnership
-
C.
Corporation
-
D.
Franchise
Solution
A partnership allows two or more individuals to share responsibility and resources.
Correct Answer:
B
— Partnership
Learn More →
Q. Which form of business ownership is characterized by a legal separation between the owner and the business?
-
A.
Sole proprietorship
-
B.
Partnership
-
C.
Corporation
-
D.
Cooperative
Solution
A corporation is legally separate from its owners, providing limited liability protection.
Correct Answer:
C
— Corporation
Learn More →
Q. Which form of business ownership is characterized by a single owner who has complete control?
-
A.
Sole proprietorship
-
B.
Partnership
-
C.
Corporation
-
D.
Limited liability company (LLC)
Solution
A sole proprietorship is owned and controlled by a single individual.
Correct Answer:
A
— Sole proprietorship
Learn More →
Showing 1 to 16 of 16 (1 Pages)
