Entrepreneurship: Building a Business

Chapter 7: Types of Business Ownership

Chapter Practice Tests

1
A_______________ is a business that is owned and operated by one person.
A)cooperative
B)sole proprietorship
C)limited partnership
D)creative proprietorship
2
An owner who has full responsibility for all debts and actions of the business is said to have_____________.
A)liability protection
B)unlimited liability
C)equity
D)limited partnership
3
To operate as a sole proprietor of a business and use a name other than your own, you must have a______________.
A)certified public accountant (CPA)
B)Small Business Administration (SBA)
C)limited liability company (LLC)
D)Certificate of Doing Business Under an Assumed Name (DBA)
4
If you are going to hire employees, you need to obtain a/an_________.
A)résumé
B)Employee Identification Number
C)sales tax identification number
D)reference
5
If you are a vendor or a retailer, you need a/an________________.
A)sales tax identification number
B)DBA
C)income tax return
D)Employee Identification Number
6
A ___________ is an unincorporated business with two or more owners.
A)venture
B)proprietorship
C)partnership
D)corporation
7
A/An ____________ partner is a participant in a partnership who has unlimited personal liability.
A)silent
B)general
C)primary
D)unlimited
8
A ___________ is a business registered by a state that operates apart from its owners.
A)firm
B)proprietorship
C)company
D)corporation
9
A ___________ is an entity that pays taxes on earnings.
A)limited liability corporation
B)sole proprietorship
C)C-corporation
D)nonprofit corporation
10
In a C-corporation, the entrepreneurs are protected from being sued by debts and the actions of the _____________.
A)IRS
B)shareholders
C)partners
D)corporation
11
In the process of forming a corporation, the entrepreneur must file a_________.
A)Certificate of Incorporation
B)sales tax identification number
C)Certificate of Doing Business Under an Assumed Name
D)tax return
12
_______________ are the owners of the corporation.
A)board of directors
B)founders
C)shareholders
D)stockbrokers
13
A Subchapter S corporation is taxed like a _____________
A)partnership
B)C-corporation
C)nonprofit corporation
D)small business
14
A _________________ is a legal entity that makes money for reasons other than the owners' profit.
A)limited corporation
B)nonprofit corporation
C)Subchapter S corporation
D)C-corporation
15
Many law and medical firms choose to form a______ to protect their partners.
A)limited liability company
B)corporation
C)general partnership
D)Subchapter S corporation
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