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Multiple Choice The following are possible forms of business ownership except for a: sole proprietorship. partnership. bureaucracy. corporation. Joe wants to form his own business. He wants to get started as quickly land inexpensively as possible and has a strong desire to control the business himself. He is confident he will be successful and wants to keep all the profits himself. Joe’s goals indicate he would probably choose to operate his business as a(n) : limited partnership. limited liability company. S-corporation. franchise. sole proprietorship. A business owned by a single owner is referred to as a: partnership. sole proprietorship. limited partnership. corporation. subchapter S-corporation. A disadvantage of a sole proprietorship is that: sole proprietors have very little control over the operations of the business. sole proprietors have unlimited liability. it is more difficult and expensive to establish than other forms of business. its earning are subject to higher tax rates than other forms of business. sole proprietors are required to share the firm’s profits with employees. Partners have unlimited liability in a : general partnership. corporation. limited partnership. cooperative. In a limited partnership: all partners have limited liability. the partnership exist only for a limited time period, or until a specific task is accomplished. the limited partners do not participate in management of the company. the partners agree to operate in a limited geographic area. no more than 100 partners may invest in the company at any one time. When two or more people, having complementary skills, agree to co-own a business, this agreement is referred to as a: partnership. sole proprietorship. cooperative. corporation. joint venture. A general partnership that protects a partner’s personal assets from the negligence of other partners is call a: limited liability company. cooperative. private corporation. master limited partnership. protected partnership. The


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