03.03 Who Is The Boss Quiz

Question: What kind of business organization requires more money up front, entails shared profits and responsibilities, but protects personal assets through shareholding?

Answer: Corporation

Question: What kind of business organization is easy to start and stop and involves sharing the workload, profits, and responsibilities?

Answer: Partnership

Question: Sasha has been running a bicycle delivery service for more than a year. Her business is going well, but she is having a hard time managing her accounts and keeping up with her budget. What would be a good business decision for her to make?

Answer: Look for a partner who can contribute business expertise.

Question: Webster is a talented baker and has a degree in business management. He wants to own his own chain of incorporated bakeries one day. What obstacle does he face to starting a corporation right away?

Answer: High up-front costs

Question: Friedo and Miriam meet at a start-your-own business workshop. They would both like to open a bookstore. While they have start-up capital, they are worried about the risk to their personal property. Which of the following would most likely be the best business choice for each of them?

Answer: Limited liability company