Unit Test

Question 1

shareholderspartnersbankersboard members

Revolt · Accepted Answer

shareholders

Question 2

Which best describes the difference between sole proprietorships and partnerships?

Revolt · Accepted Answer

Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.

Question 3

An entrepreneur’s first business fails, but their second attempt at the business is succeeding. You can assume that

Revolt · Accepted Answer

they learned from their mistakes.

Question 4

A disadvantage of forming a partnership is that owners

Revolt · Accepted Answer

are fully responsible for their partners' losses.

Question 5

An entrepreneur who opens a franchise must

Revolt · Accepted Answer

assume debts.

Unit Test Answers