A Trivia Quiz On Types Of Businesses!

33 Questions | Total Attempts: 500

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A Trivia Quiz On Types Of Businesses!

Do you know how many types of businesses exists? Would you be able to pass this quiz? The types of companies include sole proprietorship, limited liability proprietorship, partnerships, corporations, and non-profit organizations. Structuring your business is the most important part of starting a business. For example, a limited liability proprietorship is when profits and losses can go through to your income without facing corporate taxes. Take this quiz, and you will earn a certificate.


Questions and Answers
  • 1. 
    Which of the following are characteristics of sole proprietorships?
    • A. 

      Limited life and unlimited liability

    • B. 

      Limited life and limited liability

    • C. 

      Unlimited life and unlimited liability

    • D. 

      Unlimited life and limited liability

  • 2. 
    Which of the following is most likely to be a sole proprietorship?
    • A. 

      A car manufacturer

    • B. 

      A legal firm with four lawyers

    • C. 

      A home builder

    • D. 

      A dog grooming service

  • 3. 
    What often happens when the owner of a sole proprietorship dies?
    • A. 

      The business closes down.

    • B. 

      The business changes names.

    • C. 

      The partner takes over the business.

    • D. 

      The government takes over the business.

  • 4. 
    Which of the following characteristics is most likely to characterize someone who opens a sole proprietorship?
    • A. 

      Risk-taking

    • B. 

      Conformity

    • C. 

      Caution

    • D. 

      Government dependence

  • 5. 
    What is a general partnership?
    • A. 

      A business in which none of the partners is responsible for the debts or liabilities of the other partners

    • B. 

      A business in which one partner acts as the general manager

    • C. 

      A business in which the partners share management and liabilities

    • D. 

      A business in which at least one partner is not involved in management and is liable only for his or her investment

  • 6. 
    Who is most likely to look for limited partners?
    • A. 

      Someone who needs money and management advice

    • B. 

      Someone who wants to share liabilities and debts if the business fails

    • C. 

      Someone who needs assistance with the day-to-day management

    • D. 

      Someone who needs money but wants to retain control of the business

  • 7. 
    What is one of the biggest disadvantages of partnerships?
    • A. 

      Potential for conflict between partners

    • B. 

      Increased liability

    • C. 

      Decreased resources

    • D. 

      More government oversight

  • 8. 
    Which of the following is a major advantage of owning a franchise?
    • A. 

      Having complete control over product

    • B. 

      Selling a product that consumers know

    • C. 

      Being free from all oversight

    • D. 

      Decorating your business the way you want

  • 9. 
    What type of organization is a credit union?
    • A. 

      Franchise

    • B. 

      Service cooperative

    • C. 

      Consumer cooperative

    • D. 

      Nonprofit organization

  • 10. 
    What is a typical requirement of a consumer cooperative?
    • A. 

      Paying a membership fee

    • B. 

      Paying a licensing fee

    • C. 

      Working without a salary

    • D. 

      Maximizing profit

  • 11. 
    A group of city leaders decide to raise funds for a museum to honor the city's founder. What type of organization will they use for this purpose?
    • A. 

      A consumer cooperative

    • B. 

      A producer cooperative

    • C. 

      A service cooperative

    • D. 

      A nonprofit organization

  • 12. 
    What term is defined as an enterprise that produces goods or services, usually to make a profit?
    • A. 

      Business organization

    • B. 

      Unlimited liability

    • C. 

      Stock

    • D. 

      Vertical merger

  • 13. 
    What does the term-limited life mean?
    • A. 

      The business does not continue if the owner leaves.

    • B. 

      There are many regulations on business activities.

    • C. 

      There is a ceiling on the number of business expenses.

    • D. 

      The business is restricted in size.

  • 14. 
    What do many people consider to be the chief advantage of a sole proprietorship?
    • A. 

      The owner has unlimited liability.

    • B. 

      The owner keeps all the profits.

    • C. 

      The owner has unlimited startup funds.

    • D. 

      The owner does not have to obey labor laws.

  • 15. 
    What is a business owned and managed by a single person called?
    • A. 

      Conglomerate

    • B. 

      General partnership

    • C. 

      Sole proprietorship

    • D. 

      Limited partnership

  • 16. 
    What is the term for a business that is co-owned by two or more people who agree on how responsibilities, profits, and losses will be divided?
    • A. 

      Partnership

    • B. 

      Major partnership

    • C. 

      Limited lifetime liability partnership

    • D. 

      Limited liability corporation

  • 17. 
    What is the name for an individual who owns a share of a corporation and is entitled to part of its profits?
    • A. 

      Stockholder

    • B. 

      Director

    • C. 

      Officer

    • D. 

      President

  • 18. 
    Which of the following is a corporation that issues stock that can be freely bought and sold?
    • A. 

      Nonprofit corporation

    • B. 

      Sole proprietorship

    • C. 

      Not-so-public corporation

    • D. 

      Public corporation

  • 19. 
    What is it called when companies that produce the same product merge?
    • A. 

      Horizontal merger

    • B. 

      Conglomerate

    • C. 

      Recreational merger

    • D. 

      Multinational corporation

  • 20. 
    What is the name for a contract in which a corporation promises to repay borrowed money, plus interest, on a fixed schedule?
    • A. 

      Share

    • B. 

      Dividend

    • C. 

      Stock

    • D. 

      Bond

  • 21. 
    Angela opens a coffee shop, which she owns and where she sells a national brand of gourmet coffee. She pays licensing fees to do this. What kind of business it this?
    • A. 

      A franchise

    • B. 

      A cooperative

    • C. 

      A nonprofit

    • D. 

      A partnership

  • 22. 
    What is cooperative?
    • A. 

      An institution that makes laws

    • B. 

      A business that licenses the right to sell its products in a particular area

    • C. 

      A business operated for the shared benefit of its owners, who are also its customers

    • D. 

      A semi-independent business that buys the right to run a franchise

  • 23. 
    Which can be both an advantage and disadvantage of sole proprietorships?
    • A. 

      The owner has total responsibility for all business decisions and financial obligations.

    • B. 

      There are few government regulations placed on sole proprietorships.

    • C. 

      A person who wants to open a sole proprietorship usually has limited funds.

    • D. 

      The owner of a sole proprietorship keeps all the profits of the business.

  • 24. 
    Which of the following businesses is most likely to be a sole proprietorship?
    • A. 

      Film studio

    • B. 

      Lawn service

    • C. 

      Kitchen appliance maker

    • D. 

      Football helmet manufacturer

  • 25. 
    What is a dividend?
    • A. 

      The part of the corporation owned by a stockholder

    • B. 

      The part of the corporate profits paid to a stockholder

    • C. 

      The part of the corporation most available to stockholders

    • D. 

      The part of the corporate debt owed by the stockholders