Types of Business Ownership

Question 1

The most risky type of small business is a

Accepted Answer

start-up

Question 2

Which corporation does not pay federal or State taxes?

Accepted Answer

Non-profit corporation

Question 3

The term used when referring to ownership of a business is

Accepted Answer

proprietorship

Question 4

The length of time a sole proprietorship can exist is

Accepted Answer

as long as its owner

Question 5

The most common type of corporation is a

Accepted Answer

C Corporation

Question 6

Regular payments made by a franchisee to the franchise owner, based on profits, are called

Accepted Answer

royalties

Question 7

This type of business allows it owner to work another job while adding income

Accepted Answer

side business

Question 8

_________________ is a tax advantage a sole proprietor can take advantage of.

Accepted Answer

Writing off business expenses

Question 9

An example of a lifestyle business could be

Accepted Answer

photographer, florist

Question 10

The person who files the paperwork for a business to become incorporated is

Accepted Answer

Incorporator

Question 11

Selected by common stockholders to oversee operations of a corporation

Accepted Answer

Board of Directors

Question 12

A ______________is a legal entity created under State law, separate from its owners.

Accepted Answer

corporation

Question 13

Identify 2 of the elements a partnership agreement should cover.

Accepted Answer

length of agreement, name of business

Question 14

A limited partner

Accepted Answer

is a silent partner

Question 15

Which corporation runs like a C corp. , but does not sell stock to the public?

Accepted Answer

Private Corporation

Question 16

The percentage of the profits a sole proprietor keeps is

Accepted Answer

100

Question 17

The name of the agency that regulates corporations that sell stocks to the general public is

Accepted Answer

SEC

Question 18

Which one is a disadvantage of a partnership?

Accepted Answer

unlimited liability

Question 19

The term used to describe taxation of corporate profits and dividends is

Accepted Answer

Double Taxation

Question 20

A _______________ is a legally binding agreement made by the partners of a business.

Accepted Answer

partnership agreement

Questions 20