Types Of Business Quiz Exam!

20 Questions | By Raneen130268 | Last updated: Jul 24, 2022 | Total Attempts: 1685

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How much do you know about different types of business? Take this 'Types of Business Quiz Exam' and test your knowledge of business types. The different business types include limited liability partnerships, sole proprietorship, partnerships, corporations, non-profit organizations, etc. Sole proprietorships are the most commonplace types of businesses in the United States. It provides a simple structure that permits owners to have total control over company operations. With this quiz, gauge your understanding of businesses and their types.

Questions and Answers

1.

What kind of business is BEST described by these statements? "I am the only owner of my business. I take all the risks of doing business. I keep all the profits."
- A.
  
  Sole proprietorship
- B.
  
  Solo partnership
- C.
  
  Partnership
- D.
  
  Cooperative
2.

An entrepreneur:
- A.
  
  Enforces government regulations
- B.
  
  Takes the risk to earn profit
- C.
  
  Sets the interest rates at banks
- D.
  
  Manages financial investments
3.

In a sole proprietorship and partnership, owner(s) share profit, but liability is limited to______ and they are know to be __________
- A.
  
  Investment, unincorporated
- B.
  
  Distribution, unincorporated
- C.
  
  Production, unincorporated
- D.
  
  Theft, unincorporated
4.

What is a disadvantage of partnerships?
- A.
  
  Ease of formation
- B.
  
  Owners share responsibilities
- C.
  
  Limited liability
- D.
  
  Possibility of personality conflict
5.

What is the advantage of corporations?
- A.
  
  Minimal government regulation
- B.
  
  Limited liability
- C.
  
  Short life span
- D.
  
  It has one owner
6.

Floral Shops, Bookstores, Farms are examples of what type of business?
- A.
  
  Sole Proprietorship
- B.
  
  Corporation
- C.
  
  Franchise
- D.
  
  Multinational Corporation
7.

Limited companies such as private limited do NOT continue when stockholders sell the stock.
- A.
  
  True
- B.
  
  False
8.

What is the most used form of a business?
- A.
  
  Partnership
- B.
  
  Sole proprietorship
- C.
  
  Coperation
- D.
  
  Single trade
9.

Unlimited liability is when the owner is only limited to the amount he invested.
- A.
  
  True
- B.
  
  False
10.

An unincorporated business is one that does have a separate legal identity.
- A.
  
  True
- B.
  
  False
11.

One of the advantages of a joint venture is:
- A.
  
  Disagreements between partners
- B.
  
  Knowledge about the country operated is ready with the partner
- C.
  
  You share profits
- D.
  
  All of these
12.

A franchise is a new business based according to the use of name, logo, and trading methods.
- A.
  
  True
- B.
  
  False
13.

The franchise sells to the franchisee.
- A.
  
  True
- B.
  
  False
14.

Franchisor contributes to:
- A.
  
  Use of name
- B.
  
  Advertising
- C.
  
  Ideas
- D.
  
  All of the above
15.

The best definition of a sole trader form of business organization is:
- A.
  
  The business only employs one person
- B.
  
  The business is owned by one person
- C.
  
  The firm has a single customer
- D.
  
  There is a single firm in the industry.
16.

These are all true disadvantages of a Public limited company except:
- A.
  
  Lots of legal formalities
- B.
  
  Limited liabilities
- C.
  
  Unincorporated business
- D.
  
  Incorporated business
17.

One of the advantages of the franchise to the franchisor.
- A.
  
  Expansion is not fast
- B.
  
  Bad reputation from poor management would affect the franchisor
- C.
  
  The franchisor doesn't have any responsibility over the franchisee
- D.
  
  All of the above
18.

These are all true characteristics of a private limited company except:
- A.
  
  More available capital
- B.
  
  Limited liability
- C.
  
  Incorporated business
- D.
  
  The business and the owner don't have separate identities
19.

These are all advantages of a joint venture except:
- A.
  
  Both partners share costs
- B.
  
  Risks are shared
- C.
  
  Difficulties of different cultures
- D.
  
  Profits are not enough
20.

Public limited companies and private limited companies mean that they are ___________ ownership and ______________ liability.
- A.
  
  Private, unlimited
- B.
  
  Public, limited
- C.
  
  Private, limited
- D.
  
  Public, unlimited