Sole Proprietorship Quiz
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Questions and Answers

What is the legal distinction between the owner and the business entity in a sole proprietorship?

  • The business entity is responsible for debts
  • The owner and the business entity are legally separate
  • There is no legal distinction (correct)
  • The owner has limited liability

    • Who receives all profits in a sole proprietorship?

  • The sole trader (correct)
  • The business entity
  • The employees
  • The government

    • What is the responsibility of the sole trader for the losses and debts in a sole proprietorship?

  • Shared responsibility with employees
  • Unlimited responsibility (correct)
  • No responsibility
  • Limited responsibility

    • How many owners does a sole proprietorship have?

    <p>One</p> Signup and view all the answers

    Can a sole proprietor use a trade name different from their legal name?

    <p>Yes, they may use a trade name</p> Signup and view all the answers

    What is a partnership?

    <p>An arrangement where business partners cooperate for mutual interests</p> Signup and view all the answers

    When were partnerships first implemented?

    <p>In medieval times in Europe and the Middle East</p> Signup and view all the answers

    What did partnerships contribute to in Europe?

    <p>The Commercial Revolution in the 13th century</p> Signup and view all the answers

    What is a possible form of a partnership?

    <p>Issuing and holding equity</p> Signup and view all the answers

    Who can be partners in a partnership?

    <p>Individuals, businesses, interest-based organizations, schools, governments</p> Signup and view all the answers

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