Question: A legal form of business with two or more owners is a(n):

Answer: Partnership

Question: One of the most important advantages of the sole proprietor form of ownership is that a business owner:

Answer: finds it easier to start and end the business.

Question: In a sole proprietorship, any debts or damages incurred by the business are your personal debts and you must pay them. This disadvantage is known as

Answer: unlimited liability

Question: Select those items considered fringe benefits that people working for a company are likely to receive, but a sole proprietor has to develop on his own:

Answer: A pension plan

Paid sick or vacation time

Paid health insurance

Question: In general partnership, all partners share the responsibility for operating the business and assume _____ for the business’s debts.

Answer: Liability

Question: Many people do not like working for someone, so being your own _______ is an advantage of sole proprietorship.

Answer: Boss

Question: A ________ partnership has partners who do not share in operating the business.

Answer: Limited

Question: Stockholders’ liability for losses only up to the amount they invest is called _______.

Answer: Limited liability

Question: A partnership where all owners share in operating the business and in assuming unlimited liability for the business’s debts is a:

Answer: general partnership

Question: Taryn and Eilysh have decided to form a partnership. Taryn will not have management responsibility, but will invest money in the business. Taryn will be considered a(n)

Answer: limited partners