Sole Proprietorship(Commerce ) Questions and Answers

Question 1. What is a Sole Proprietorship?
  1.    Business owned by president
  2.    Business owned by several companies
  3.    Business owned by one person
  4.    Business owned by a company
Explanation:-
Answer: Option C. -> Business owned by one person
Question 2. What is the most common form of business ownership?
  1.    Corporation
  2.    Company
  3.    Sole Proprietorship
  4.    LLC
Explanation:-
Answer: Option C. -> Sole Proprietorship
Question 3. What is the name of a person who owns part of a corporation?
  1.    Stakeholder
  2.    Shareholder
  3.    Trust Agent
  4.    Chairman
Explanation:-
Answer: Option B. -> Shareholder
Question 4. Which of the following is a disadvantage of franchise?
  1.    assistance from a parent company
  2.    name recognition
  3.    shared advertising expenses
  4.    must follow parent company business structure
Explanation:-
Answer: Option D. -> must follow parent company business structure
Question 5. Which business depends on just one person for the skills and talents to run the business?
  1.    Sole Proprietorship
  2.    Partnership
  3.    Corporation
  4.    Franchise
Explanation:-
Answer: Option A. -> Sole Proprietorship
Question 6. A _______ forms boards to act as governing bodies
  1.    franchise
  2.    partnership
  3.    sole proprietorship
  4.    corporation
Explanation:-
Answer: Option D. -> corporation
Question 7. This type of organization is a legal entity separate from its owners
  1.    Sole proprietorship
  2.    Partnership
  3.    Corporation
  4.    Franchise
Explanation:-
Answer: Option C. -> Corporation
Question 8. Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability
  1.    Sole Proprietorship
  2.    Partnership
  3.    Corporation
  4.    Franchise
Explanation:-
Answer: Option A. -> Sole Proprietorship
Question 9. A _____ is owned and operated by one individual; an example would be a plumber
  1.    franchise
  2.    partnership
  3.    sole propietorship
  4.    corporation
Explanation:-
Answer: Option C. -> sole propietorship
Question 10. Which statement is false
  1.    A sole proprietorship type of business ends when any time owner decides to end it
  2.    A sole proprietorship type of business ends when owner dies
  3.    A sole proprietorship never ends
  4.    none of the above
Explanation:-
Answer: Option C. -> A sole proprietorship never ends
© Lakshya_Education.com, All Right Reserved.
Contact Us services