Title: Forms of Business Ownership
Course: Demo 1

Q: In a sole proprietorship, the owner of the business:
- enjoys complete control over all aspects of the business
- may be personally liable (or responsible) if anyone sues the business
- is able to borrow funds for the business without any personal liability
A: enjoys complete control over all aspects of the business; may be personally liable (or responsible) if anyone sues the business

Q: A ________ is owned and managed by a group of individuals who share in decision-making and risk.
- sole proprietorship
- C corporation
- partnership
A: partnership

Q: Which of the following statements is correct?
- a sole proprietor has no personal liability for debts of his business
- there are far more corporations that there are sole proprietorships and partnerships
- revenue produced by corporations is much greater than that produced by proprietorships and partnerships
A: revenue produced by corporations is much greater than that produced by proprietorships and partnerships

Q: The most common form of business ownership in the U.S. is:
- partnership
- corporation
- sole proprietorship
A: sole proprietorship

Q: Partnerships have several advantages over sole proprietorships including:
- the partners bring diverse skills and perspectives
- partners bring additional resources including access to funding
- the partners are not liable for business debts
A: the partners bring diverse skills and perspectives; partners bring additional resources including access to funding

Q: In a limited partnership:
- a general partner runs the business.
- the limited partners’ liability is capped at the amount of their investment in the company.
- can have no more than four limited partners.
A: a general partner runs the business.; the limited partners’ liability is capped at the amount of their investment in the company.

Q: The disadvantages of partnerships include:
- the need to share decision making across the partners.
- the risk of a single partner taking action that is damaging to the company.
- the limitations of the highly-restrictive, legal partnership requirements.
A: the need to share decision making across the partners.; the risk of a single partner taking action that is damaging to the company.

Q: A ________ is owned by a single individual who is responsible for all decisions and liabilities.
- limited liability partnership
- S corporation
- sole proprietorship
A: sole proprietorship