18 Questions
What is a characteristic of a sole proprietorship that can lead to continuity problems?
The owner's retirement or long-term illness
Which of the following is a benefit of a sole proprietorship in terms of finance?
No financial requirements to start the business
What is the primary source of financial funds for a sole proprietorship?
The sole proprietor's personal financial capabilities
What is a characteristic of a sole proprietorship in terms of management decision-making?
The sole proprietor makes all management decisions
What is a financial risk associated with a sole proprietorship?
The owner is personally responsible for business debts
What is a characteristic of a sole proprietorship in terms of taxation?
The owner reports business profits on their personal income tax statement
Which type of business ownership allows for more than one owner?
Partnership
What is the primary difference between owner(s) and manager(s) in unincorporated businesses?
Owners and managers are the same person(s)
What is the primary source of finance for a corporation?
Share capital
What is a key consideration for a business when choosing a source of finance?
The business's current financial situation
What is a type of short-term credit?
Bank overdraft
What document reveals the sources of finance that a business has used?
Balance sheet
What is a crucial factor in determining who is liable for the debts and obligations of a business?
The legal structure of the business
Who might be interested in knowing the legal structure of a business?
Both customers and investors of the business
What is a key consideration for founders and owners of a company?
The legal structure and implications for liability
Who may own a business?
Either individuals or other businesses
What is a key difference between various types of business ownership?
The level of liability for the owners
What is a crucial consideration when raising financial resources for a business?
The business's legal structure
This quiz covers the different forms of business ownership and sources of finance, including the legal aspects of setting up and running a business.
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