40 Questions
Which type of business structure has a single owner and the owner is in complete control?
Sole proprietorship
What is one advantage of a sole proprietorship?
Taxation at personal rate
Which type of business structure has multiple owners with common business interests?
General partnership
What is one disadvantage of a partnership?
Unlimited liability
Which type of partnership has one partner who is liable for all the losses?
Limited partnership
What is one advantage of a corporation?
Limited liability
Which type of business structure requires the founders to be distinct from the assets and liabilities of the business?
Corporation
What is one disadvantage of a corporation?
Responsibility of all business actions
What is the term for the percentage of money paid to shareholders as a share of the profits?
Dividends
What is one requirement for a corporation to be operational?
Unique name
Which type of corporation has limited ownership by individuals of close relation and greater management compared to a public corporation?
Private corporation
What is the term for the process when a company decides to sell its shares to the public?
Initial Public Offering (IPO)
What is the main role of the Board of Directors in a corporation?
All of the above
What type of shares reflect profitability in both preferred and common shares?
Dividends
What is the term for the right of common shareholders to have the first right to new share issues?
Pre-emptive right
What is the advantage of corporations in terms of ownership transfer?
Ownership transfer is easy
What is the term for a separate entity shared by individuals or organizations?
Joint venture
What do mergers create in terms of efficiencies and cost savings?
Efficiencies and cost savings
What is the term for when assets of a company are used to acquire finance to purchase?
Leveraged buy-out
What is the main advantage of corporations in terms of expansion potential?
Expansion potential is easy
Which type of corporation allows ownership by anyone and shares can be purchased on stock exchanges?
Public corporation
What is the term for the process when a company decides to sell its shares to the public?
Initial Public Offering (IPO)
What is the term for the right of common shareholders to have the first right to new share issues?
Pre-emptive right
What is one advantage of corporations in terms of ownership transfer?
Ease of sourcing funds
What is one disadvantage of a corporation?
Double taxation
What is the term for a separate entity shared by individuals or organizations?
Joint venture
What is one advantage of a sole proprietorship?
Limited liability
What is one disadvantage of a partnership?
Employee-owner separation
What do mergers create in terms of efficiencies and cost savings?
Efficiencies and cost savings
What is the main role of the Board of Directors in a corporation?
Oversee management
Which type of business structure allows the owner or manager to have complete control over the business?
Sole Proprietorship
What is one advantage of a limited partnership compared to a general partnership?
Limited liability
What is one disadvantage of a limited liability partnership?
Responsibility of all business actions
What is one advantage of a corporation compared to a partnership?
Limited liability
What is one disadvantage of a corporation?
Expensive to start
What is the term for the process of sharing responsibilities, assets, profits, and liabilities in a general partnership?
General partnership
What is one advantage of a limited liability partnership compared to a general partnership?
Limited liability
What is one disadvantage of a sole proprietorship?
Unlimited liability
What is the term for the ownership of a corporation through shares?
Stocks
What is one advantage of a partnership compared to a sole proprietorship?
Sharing of skills
Test your knowledge on sole proprietorships and partnerships with this quiz! Learn about the advantages and disadvantages of each business structure, including factors like control, liability, funding, taxation, and more. Challenge yourself and see how well you understand the differences between these two types of business entities.
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