Types Of Business Quiz Exam!

20 Questions | Total Attempts: 647

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Types Of Business Quiz Exam!

How much do you know about different types of business? 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, you will succeed, and it means business.


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

  • 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

  • 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

  • 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

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