Business Ownership Quiz Quiz

A business structure where the owner is personally responsible for all debts and obligations.

A business structure with one owner who receives all profits but is personally responsible for all losses.

A business structure where owners are legally separate from the business, protecting their personal assets.

A business structure with multiple owners who share profits and losses, offering a pooling of resources and expertise.

A business structure where owners are not personally liable for debts, offering protection from financial ruin.

The ability for a corporation to raise funds by selling shares of ownership to investors.

A business structure that involves complex legal and financial requirements.

A business structure that involves double taxation of profits, once at the corporate level and again at the individual level.

A business model where a franchisor grants a franchisee the right to operate a business using the franchisor's brand and system.

Franchising often leads to higher success rates compared to starting a brand new business.

Franchising limits the franchisee's control over operations, as they are bound by the franchisor's rules.

Franchising provides training and support from the franchisor, assisting franchisees in running their operations.

Corporations have a longer lifespan, even if ownership changes hands, ensuring business continuity.

Corporations face more regulations and reporting requirements compared to sole proprietorships.