12 Questions
In a sole proprietorship, who is responsible and liable for debts incurred by the business?
Owner
What is the term used to refer to the practice of making one's living or making money by producing or buying and selling products?
Business
What does having a business name not do in terms of separating the business entity from the owner?
Separate the business entity from the owner
How is the taxation system for businesses different from that of corporations?
Business structure does not allow for corporate tax rates
Which form of business ownership provides limited liability for its owners/members?
Corporation
What is another term for a sole proprietorship?
Sole trader
Which type of business owner has unlimited liability for all obligations incurred by the business?
Sole proprietor
In which type of partnership does each partner have unlimited liability for the debts incurred by the business?
General partnership
Which type of business organization protects its owners or shareholders from business failure by doing business under a separate legal entity with certain legal protections?
Limited liability company
What system involves entrepreneurs purchasing the rights to open and run a business from a larger corporation?
Franchise
What type of organization is fundamental to the ideology of economic democracy and has members, not shareholders, who share decision-making authority?
Cooperative
Which type of business is commonly used for non-commercial purposes such as clubs or charities, where members guarantee payment of certain amounts if the company goes into insolvent liquidation?
Company limited by guarantee
Test your knowledge of business fundamentals with this quiz. Explore concepts such as business ownership, liabilities, and the taxation system.
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