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Number 1. The advantages of this type of business are a sense of pride and accomplishment, the owner is in charge and can keep all profits, and it is not subject to double taxation.

Correct Answer: Sole proprietorship

Number 2. The advantages to this type of business is a co-owner has access to additional funds and business talent.

Correct Answer: Partnership

Number 3. Advantages of this type of business include the ability to raise large sums of money through stock offerings, and limited liability for stockholders.

Correct Answer: Corporation

Number 4. A disadvantage of this type of business is the owner has access to a limited amount of funds and talent.

Correct Answer: Sole proprietorship

Number 5. A disadvantage to this type of business is all partners are liable for the actions of each other.

Correct Answer: Partnership

Number 6. A disadvantage to this type of business is the owner gives up control of the company to stockholders, and (s)he is subject to double taxation.

Correct Answer: Corporation

Number 7. The difference between general and limited partnership is that in a (blank) partnership, both partners have liability and responsibility while in a (blank) partnership, one partner has no liability or responsibility.

Correct Answer: General, limited

Number 8. Advantages of this type of business are you are selling a known product, and you have professional support for the business.

Correct Answer: Franchise

Number 9. A disadvantage of a (blank) is the owner doesn't have a much flexibility in business operations

Correct Answer: Franchise

Number 10. Which type of business organization is the most common?

Correct Answer: Sole proprietorship

Number 11. Who are considered the owners of a corporation?

Correct Answer: Stockholders

Number 12. How many owners in a sole proprietorship?

Correct Answer: One

Number 13. How many owners in a partnership?

Correct Answer: Two or more

Number 14. An advantage of a (blank) is that it provides liability protection for smaller companies.

Correct Answer: LLC or S corporation

Number 15. (blank) (blank) are earnings not given to stockholders, but are invested back into a company.

Correct Answer: Retained earnings

Number 16. (blank) are shares of ownership in a public company.

Correct Answer: Stocks

Number 17. The primary goal for most business types is to (blank).

Correct Answer: make a profit