Economics Quiz 7

Question 0

What is one of the main advantages of a sole proprietorship?

Answer 0

Freedom from Being an Employee

Question 1

a business firm that is owned by one person; most popular business ownership

Answer 1

Sole proprietorship

Question 2

What is one of the main disadvantages of a sole proprietorship?

Answer 2

Unlimited Personal Financial Liability

Question 3

business enterprise owned by two or more people; least popular form of business ownership; written contract not required but highly recommended

Answer 3

Partnership

Question 4

Name an advantage of a partnership

Answer 4

Greater Financial Resources than Sole Proprietorship

Question 5

a lender to whom a debt is owned

Answer 5

Creditor

Question 6

a person who obligates himself to pay the debts of another person

Answer 6

Co signer

Question 7

When a person or group “incorporates” a business, they legally declare the business to be separate from themselves

Answer 7

Incorporation

Question 8

corporation that is owned by private citizens; the business is considered a separate entity from its owners

Answer 8

Private corporation

Question 9

corporation that is owned by the general public and managed by the government

Answer 9

Public corporation

Question 10

Primary advantage of an incorporation

Answer 10

Limited Personal Financial Liability

Question 11

Greatest disadvantage of an incorporation

Answer 11

Higher Taxes