Types of Business Ownership: Sole Proprietorship vs. Cooperative

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17 Questions

Which of the following is an advantage of a partnership?

Low working capital requirement

What is a disadvantage of a partnership?

Limited financial sources

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

All partners

What does a partnership agreement help with?

Defining the terms of the partnership

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

The owner can maintain personal contact with employees

What is a potential difficulty faced by partnerships?

Unlimited liability

What is an advantage of a partnership?

Easy to form

Which of the following is a disadvantage of a partnership?

Unlimited liability

Why is lack of continuity a disadvantage of a partnership?

It affects the stability and long-term prospects of the business

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

Unlimited liability for all partners

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

Mutual agency among partners

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

General partnership

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

Unlimited liability for debts

Which business type offers tax advantages compared to a corporation?

General partnership

What is a distinguishing feature of a limited partnership?

Two classes of partners with different liabilities

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

Limited partnership

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

Articles of Incorporation/Charter

This quiz compares and contrasts the features of a sole proprietorship and a cooperative business model. Learn about the advantages and disadvantages of each type of business ownership.

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