Practice: Business Structures, Commercial Paper & Government Regulation Quiz Quiz | Regulation (REG)

Question 1

Which business structure is owned and operated by a single individual?

Answer

Sole proprietorship

Answer

General partnership

Answer

Corporation

Answer

Limited partnership

Question 2

A major disadvantage of a sole proprietorship is:

Answer

Complex formation requirements

Answer

Mandatory board of directors

Answer

Limited control over operations

Answer

Unlimited personal liability for business debts

Question 3

A partnership generally exists when:

Answer

A corporation issues stock

Answer

Two or more persons carry on a business for profit as co-owners

Answer

A business has only one employee

Answer

A government agency licenses a business

Practice Quiz