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- 1. Multiple Choice
Which of the following is a disadvantage of purchasing a franchise?
They are turnkey businesses.
Startup costs are high.
There are no royalty fees.
There are very few rules in a franchise.
- 2. Multiple Choice
Why is it a good idea to create a partnership agreement?
ALL are correct.
To separate the business, if necessary
To have a dispute resolution plan
In case of the untimely death of a partner
- 3. Multiple Choice
What is the most significant risk factor in a sole proprietorship?
Having no regular schedule
Doing all of the work
Having to answer to a board of directors
Unlimited liability, even for employee actions
- 4. Multiple Choice
How are taxes handled in a partnership form of business ownership?
The business passes only its profits to the owners, and they claim the profits on their personal tax return.
The business passes its profits and losses to the owners, and they claim the profits and losses on their personal tax return.
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The business passes its profits and losses to the owners, and they claim the profits and losses on their sole proprietorship tax return.
- 5. Multiple Choice
What is the main disadvantage of being a sole proprietor?
High start up costs
Limited skills
Unlimited liability
- 6. Multiple Choice
A sole proprietorship is taxed only once.
false
True
- 7. Multiple Choice
An advantage of a partnership is having access to more
Capital
Partnership
more taxes payers
- 8. Multiple Choice
. The form of business organization that has the largest sales volume is the:
partnership.
corporation.
cooperative.
multinational
- 9. Multiple Choice
The simplest form of business ownership is a:
proprietorship.
partnership.
corporation.
cooperative
- 10. Multiple Choice
Which of the following is an advantage of a sole proprietorship?
ease of starting a business
being your own boss.
pride of ownership.
all of the above.
- 11. Multiple Choice
The main disadvantage of a general partnership is:
the unlimited liability of the partners.
disagreement amongst partners.
shared management.
difficulty of termination
- 12. Multiple Choice
is a business with two or more owners
corporation.
conglomerate
partnership
public corporation.
- 13. Multiple Choice
A partner who is not actually involved in the partnership but lends his name for public relations purposes is a:
silent partner.
general partner.
Nominal Partner
- 14. Multiple Choice
partner is an owner who has unlimited liability and is active in managing the firm
senior partner
silent partner.
General Partner
- 15. Multiple Choice
Which of the following is probably the most important reason for incorporating?
limited liability of shareholders
more money for investment
increased flexibility.
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