Business Ownership Questions! Trivia Quiz
(84).jpg "Business Ownership Questions! Trivia Quiz - Quiz")
Do you know anything about business ownership? Do you suppose you can pass this quiz? Business ownership involves having control over a business enterprise and being able to influence its functioning and operations. One example of a type of ownership is a sole proprietorship, which is the simplest form of business type. If you are interested in business or business ownership, then this is the quiz for you.
- 1.
Which of the following is NOT an advantage of a sole proprietorship?
- A.
Owners are able to control all aspects of their business.
- B.
Owners receive all profits from the business.
- C.
Owners assume all liabilities from the business.
- D.
The owner often deals with customers personally.
Correct Answer
C. Owners assume all liabilities from the business.Explanation
A sole proprietorship is a business structure where the owner is solely responsible for all aspects of the business. The advantages of a sole proprietorship include the ability to control all aspects of the business, receiving all profits, and dealing with customers personally. However, the owner also assumes all liabilities, meaning they are personally responsible for any debts or legal obligations of the business. This can put the owner's personal assets at risk. Therefore, assuming all liabilities is not an advantage of a sole proprietorship.Rate this question:
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- 2.
Which of the following is NOT a DIS-advantage of a sole proprietorship?
- A.
The owner often has a personal relationship with customers/clients.
- B.
The owners personal assets can be claimed by creditors is the business goes bankrupt.
- C.
The owner must provide all capital investments to make the business grow.
- D.
If the owner becomes ill or cannot work for some reason, the business could fail.
Correct Answer
A. The owner often has a personal relationship with customers/clients.Explanation
The given answer states that "The owner often has a personal relationship with customers/clients" is not a disadvantage of a sole proprietorship. This means that having a personal relationship with customers/clients is actually an advantage of a sole proprietorship. This is because having a personal relationship allows the owner to have a deeper understanding of their customers' needs and preferences, which can lead to better customer satisfaction and loyalty. It also enables the owner to provide personalized services and build a strong rapport with their clientele.Rate this question:
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- 3.
What are the three real-life examples of a sole proprietor business?
- A.
A fast food restaurant chain, A department store, A multinational corporation.
- B.
Mountain Equipment Co-Op, Costco, Zellers.
- C.
A barbershop, A corner variety store, A local restaurant.
Correct Answer
C. A barbershop, A corner variety store, A local restaurant.Explanation
The correct answer is A barbershop, A corner variety store, A local restaurant. These three examples are real-life sole proprietor businesses because they are small, independently owned and operated by a single individual. In a sole proprietorship, the owner has complete control over the business and is personally responsible for its debts and liabilities. A barbershop, a corner variety store, and a local restaurant are all common examples of small businesses that are often run as sole proprietorships.Rate this question:
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- 4.
Which of the following is NOT an advantage of a partnership?
- A.
There are more knowledge and skill available for the business.
- B.
More money can be raised to invest in the business.
- C.
Debt responsibility is shared.
- D.
Decisions may cause conflict between partners.
Correct Answer
D. Decisions may cause conflict between partners.Explanation
In a partnership, there are several advantages such as having more knowledge and skill available for the business, being able to raise more money to invest, and sharing the debt responsibility. However, one disadvantage of a partnership is that decisions made within the business may cause conflicts between partners. This is because partners may have different opinions or ideas on how to run the business, leading to disagreements and potential conflicts.Rate this question:
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- 5.
Which of the following is NOT a DIS-advantage of a partnership?
- A.
One partner can keep the business running of the other partner falls ill.
- B.
Creditors can take away personal assets if the business goes bankrupt.
- C.
The amount of capital that can be raised is limited.
Correct Answer
A. One partner can keep the business running of the other partner falls ill.Explanation
One advantage of a partnership is that if one partner falls ill, the other partner can keep the business running. This means that the business does not have to shut down completely in the event of one partner's illness, ensuring continuity and potentially minimizing financial losses.Rate this question:
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- 6.
What are the items listed in a partnership agreement?
- A.
The name and location of the business.
- B.
The nature of the business and the names of the owners.
- C.
The duties and responsibilities of the business owners.
- D.
The amount of capital each partner will contribute to the business and the amount of profit that each will receive.
- E.
All the above.
Correct Answer
E. All the above.Explanation
The items listed in a partnership agreement include the name and location of the business, the nature of the business and the names of the owners, the duties and responsibilities of the business owners, and the amount of capital each partner will contribute to the business and the amount of profit that each will receive.Rate this question:
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- 7.
A corporation's ownership is divided up into many parts. What are these parts called?
- A.
A stake.
- B.
A charter.
- C.
A share (or stock).
- D.
A proxy.
Correct Answer
C. A share (or stock).Explanation
A corporation's ownership is divided up into many parts called shares or stocks. Each share represents a portion of ownership in the company and entitles the shareholder to certain rights and benefits, such as voting rights and a share in the company's profits. Shareholders can buy, sell, or transfer their shares, allowing them to have a stake in the company's success or failure.Rate this question:
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- 8.
Who makes the day-to-day operating decisions in a corporation?
- A.
The executives.
- B.
The board of directors.
- C.
The shareholders.
- D.
The clients.
Correct Answer
A. The executives.Explanation
The executives make the day-to-day operating decisions in a corporation. They are responsible for managing the daily operations of the company, implementing strategies, and making decisions that affect the overall functioning of the organization. The board of directors, on the other hand, is responsible for providing guidance and oversight to the executives, while the shareholders are the owners of the company who have a stake in its success. The clients, although important, do not have the authority to make operating decisions in a corporation.Rate this question:
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- 9.
Who makes the larger decisions in a corporation? (such as what to produce, how to produce it, who will be the executives, etc.,)
- A.
The shareholders.
- B.
The board of directors.
- C.
The Clients.
- D.
The employees.
Correct Answer
B. The board of directors.Explanation
The board of directors makes the larger decisions in a corporation. They are responsible for determining what products or services the company will produce, how they will be produced, and who will serve as executives. Shareholders have ownership in the company but do not typically have direct decision-making power. Clients are the customers of the company and do not have decision-making authority. Employees may have input and influence, but the final decisions are typically made by the board of directors.Rate this question:
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- 10.
Which of the following is NOT an advantage of a corporation?
- A.
The executives do not have personal contact with the customers and employees.
- B.
Large amounts of capital can be raised to invest in the company.
- C.
A corporation often has a large number of employees with a wide variety of skills.
- D.
Legally a corporation has 'limited liability', meaning that shareholders cannot have their personal assets taken away if the company goes bankrupt.
Correct Answer
A. The executives do not have personal contact with the customers and employees.Explanation
The statement "The executives do not have personal contact with the customers and employees" is not an advantage of a corporation because personal contact with customers and employees is crucial for building relationships, understanding their needs, and providing better customer service. Having personal contact allows executives to gather feedback, address concerns, and make informed decisions. It also fosters a sense of connection and loyalty among customers and employees. Therefore, not having personal contact can be seen as a disadvantage rather than an advantage.Rate this question:
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- 11.
Which of the following is NOT a DIS-advantage of a corporation?
- A.
The executives and shareholders usually have no contact with employees or customers.
- B.
Share holders who only own a few shares have very little input in company decisions.
- C.
The corporation can exist forever as long as it doesn't go bankrupt.
- D.
Profits and dividends that shareholders receive are taxed at high rates.
Correct Answer
C. The corporation can exist forever as long as it doesn't go bankrupt.Explanation
The given answer states that "The corporation can exist forever as long as it doesn't go bankrupt" is NOT a disadvantage of a corporation. This is because the perpetual existence of a corporation, as long as it remains financially stable, is considered an advantage. It allows for long-term planning and continuity in operations, unlike other business structures that may dissolve upon the death or departure of owners.Rate this question:
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- 12.
Corporations and co-operative businesses are very similar. Which of the following IS NOT a similarity between a corporation and a co-operative business?
- A.
A board of directors is elected by the shareholders.
- B.
A government charter is required to conduct business.
- C.
Each shareholder gets one vote on company decisions regardless of how many shares they own.
Correct Answer
C. Each shareholder gets one vote on company decisions regardless of how many shares they own.Explanation
The correct answer is "Each shareholder gets one vote on company decisions regardless of how many shares they own." This is not a similarity between a corporation and a co-operative business. In a corporation, voting rights are typically based on the number of shares owned, whereas in a co-operative business, each member usually has an equal vote regardless of their shareholding.Rate this question:
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- 13.
Which of the following is NOT an advantage of a small business
- A.
Owners usually invest their own savings into the company and are therefor motivated to be successful.
- B.
They often carry a lot of debt needed to expand and grow the business.
- C.
They are often run by creative and skilled people.
- D.
They can expand quickly and provide more jobs.
Correct Answer
B. They often carry a lot of debt needed to expand and grow the business.Explanation
Small businesses usually have limited financial resources, so they often rely on the owner's personal savings to invest in the company. This personal investment motivates the owner to work hard and be successful. Additionally, small businesses are often run by creative and skilled individuals who bring innovative ideas to the table. They can also expand quickly and provide more job opportunities. However, the given answer option states that small businesses often carry a lot of debt needed to expand and grow. This implies that debt is not an advantage, as it can create financial burdens and restrict the business's growth potential.Rate this question:
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- 14.
What are some of the advantages of owning a franchise (i.e. being a franchisee)?
- A.
Owners get management training and help with setting up their business.
- B.
There is a guaranteed supply of acceptable products and a guarantee that another franchise will not open near by.
- C.
The franchisor takes care of product management and marketing.
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
Owning a franchise offers several advantages. Firstly, franchisees receive management training and assistance in setting up their business, which helps them acquire the necessary skills and knowledge for running a successful operation. Secondly, they benefit from a guaranteed supply of acceptable products, ensuring consistent quality and availability. Additionally, owning a franchise comes with the assurance that another franchise will not open nearby, reducing competition. Lastly, the franchisor takes care of product management and marketing, allowing franchisees to focus on day-to-day operations. Therefore, all of the above advantages are applicable to owning a franchise.Rate this question:
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- 15.
What are some of the disadvantages of owning a franchise (i.e. being a franchisee)?
- A.
Franchisees often have to pay high monthly or annual fees to the franchisor.
- B.
Franchisees must strictly follow the rules stated in the franchise agreement.
- C.
A franchisee is only allowed to sell products provided by the franchisor.
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
Owning a franchise (being a franchisee) can have several disadvantages. Firstly, franchisees often have to pay high monthly or annual fees to the franchisor, which can significantly impact their profitability. Secondly, franchisees are bound by strict rules stated in the franchise agreement, limiting their flexibility and autonomy in running the business. Lastly, franchisees are usually restricted to selling only the products provided by the franchisor, limiting their ability to diversify or adapt to market demands. Therefore, all of the above options accurately highlight the disadvantages of owning a franchise.Rate this question:
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- 16.
Which of the following is NOT supposed to be the purpose of a Crown corporation?
- A.
To run an essential service (such as electric power, postal services, transportation systems, etc.,)
- B.
To collect more money for the government.
- C.
To provide competition with large corporations to keep prices down for consumers.
Correct Answer
B. To collect more money for the government.Explanation
A Crown corporation is a government-owned entity that operates in the commercial sector. Its main purpose is to provide essential services to the public, such as electric power, postal services, and transportation systems. These services are meant to benefit the citizens rather than solely collecting money for the government. Crown corporations may generate revenue, but their primary focus is on delivering quality services to the public and ensuring fair competition with large corporations to keep prices down for consumers.Rate this question:
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