Name: ________________________ Date: ____________

Year and Class: _________________ Score: ________/35

ENTREPRENUERSHIP
FORMS OF BUSINESS OWNERSHIP
QUIZ 1.1
.
Directions: For each characteristic, write the Directions: Answer each question in
letter in the blank for the correct form of complete sentences. (3 points each)
ownership
21. What is the difference in a sole
A. Sole proprietorship proprietorship and partnership?
B. Partnership
C. Corporation

1. _______ Difficult and costly to start

2. _______ Easiest form to start and
most common form of business. 22. Explain the relationship between a
3. _______ Unlimited legal and financial franchisor and a franchisee.
responsibility is shared.
4. _______Requires an agreement to
start
5. _______Requires a charter filed with
the government to start
6. _______ Owner keeps all of the
profits
7. _______ Double taxation
23. What are some factors that might
8. _______ Businesses must name a
board of directors encourage a business owner to shift
9. _______Time commitment, from one form of ownership to another
responsibilities, and profits/losses are form of ownership?
shared.
10. _______ Owner responsible for all
debts and funding can be difficult to
obtain
11. _______ Owners are called
shareholders 24. Why would someone choose to start a
12. _______ Must publish annual reports franchise business?
13. _______Conflicts between owners
can be a common problem.
14. ________ Limited liability
15. ________No fringe benefits provided
to owners
16. _______ Owner makes all decisions
17. _______ Requires no paperwork other
than business licenses/permits to start 25. Of the different forms of business
18. _______Owners and managers are ownership, we have discussed in class,
generally separate which form of ownership would you want
19. _______ If one partner leaves, the to use if you started a business? Why
business can still exist
did you choose this form?
20. _______Sole control over all business
function
Name: ________________________ Date: ____________
Year and Class: _________________ Score: ________/35

ENTREPRENUERSHIP
FORMS OF BUSINESS OWNERSHIP
QUIZ 1.2