Types of Business Ownership: Sole Proprietorship vs. Cooperative
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Types of Business Ownership: Sole Proprietorship vs. Cooperative

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@RealisticGrossular

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Questions and Answers

Which of the following is an advantage of a partnership?

  • Limited skills
  • Potential difficulty in borrowing money
  • Unlimited liability
  • Low working capital requirement (correct)

    • What is a disadvantage of a partnership?

  • Low costs to start
  • Owner receives all profits
  • Limited financial sources (correct)
  • Direct control of business

    • In a partnership, the business is terminated upon the death or incapacity of:

  • Majority of the partners
  • All partners (correct)
  • Only one partner
  • The most skilled partner

    • What does a partnership agreement help with?

    <p>Defining the terms of the partnership</p> Signup and view all the answers

    Which statement is true regarding the control of a partnership business?

    <p>The owner can maintain personal contact with employees</p> Signup and view all the answers

    What is a potential difficulty faced by partnerships?

    <p>Unlimited liability</p> Signup and view all the answers

    What is an advantage of a partnership?

    <p>Easy to form</p> Signup and view all the answers

    Which of the following is a disadvantage of a partnership?

    <p>Unlimited liability</p> Signup and view all the answers

    Why is lack of continuity a disadvantage of a partnership?

    <p>It affects the stability and long-term prospects of the business</p> Signup and view all the answers

    What is a disadvantage related to the protection of minority interest in a partnership?

    <p>Unlimited liability for all partners</p> Signup and view all the answers

    Why is business secrecy higher in a partnership compared to a corporation?

    <p>Mutual agency among partners</p> Signup and view all the answers

    Which type of partnership has partners with unlimited liability for partnership debt?

    <p>General partnership</p> Signup and view all the answers

    What is a key disadvantage of a limited partnership compared to a corporation?

    <p>Unlimited liability for debts</p> Signup and view all the answers

    Which business type offers tax advantages compared to a corporation?

    <p>General partnership</p> Signup and view all the answers

    What is a distinguishing feature of a limited partnership?

    <p>Two classes of partners with different liabilities</p> Signup and view all the answers

    In which type of business organization are general partners responsible for management?

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

    What special document must officials of a share company file for establishment?

    <p>Articles of Incorporation/Charter</p> Signup and view all the answers

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