Business Ownership and Structures
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Questions and Answers

What is a major disadvantage of a sole proprietorship?

  • Limited control for the owner
  • Shared profits
  • Unlimited liability for the owner (correct)
  • Disputes with partners

What happens to a sole proprietorship when the owner dies?

  • The business is converted to a partnership
  • The business dissolves (correct)
  • The business is sold to a new owner
  • The business continues to operate

What is an advantage of a general partnership?

  • More resources and talents come with an increase in partners (correct)
  • Unlimited life for the partnership
  • Easy and inexpensive to form
  • Limited liability for the partners

What is a type of partnership that has a single general partner and one or more limited partners?

<p>Limited partnership (D)</p> Signup and view all the answers

What is a characteristic of a corporation?

<p>It is a separate legal entity from its owners (B)</p> Signup and view all the answers

What is an advantage of a corporation?

<p>Limited liability (A)</p> Signup and view all the answers

What is a disadvantage of a corporation?

<p>Double taxation (A)</p> Signup and view all the answers

What governs a corporation?

<p>A Board of Directors (B)</p> Signup and view all the answers

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