Quiz  /  Sole Proprietorship Class 12 MCQ Questions With Answers

  • 1. 
    This type of organization is a legal entity separate from its owners.

  • Sole proprietorship
  • Partnership
  • Corporation
  • Franchise

  • 2. 
    When preparing a balance sheet, the amount of owner's capital is obtained from

  • the general ledger
  • the work sheet's balance sheet credit column
  • the income statement
  • none of these

  • 3. 
    Which of the following are protections provided to authors or original works such as literature?

  • Trademarks
  • Domain names
  • patents
  • copyrights

  • 4. 
    Which is not a section on the income statement?

  • Revenue
  • Expenses
  • Owner's Equtiy
  • Net Income/Net Loss

  • 5. 
    Which of the following is the money raised by a business or investor in exchange for share of ownership of the company?

  • equity capital
  • venture capital
  • deb capital
  • investment capital

  • 6. 
    A father who wants to take his son into the business with him should form this type of business.

  • Sole Proprietorship
  • Partnership
  • Corporation

  • 7. 
    When one owner dies, the business is usually dissolved. What type of business is it?

  • Sole Proprieetorship
  • Partnership
  • Corporation

  • 8. 
    Advantages of this business type are that the owner is their own boss and gets to keep all the profits.

  • Partnership
  • Sole Proprietorship
  • Corporation
  • Franchise

  • 9. 
    Which of the following is a grant ofintelletual property rights to the inventor?

  • trademark
  • domain name
  • patent
  • copyright

  • 10. 
    The minimum number of persons required to form a partnership is

  • 1
  • 2
  • 5
  • 10

  • 11. 
    Dan, Tony, and Mac own a pizza parlor. They rotate hours and days off.

  • Sole Proprietorship
  • Partnership
  • Corporation

  • 12. 
    Which of the following is an advantage of a partnership?

  • Unlimited Liability
  • Arguments
  • Shared responsibility
  • Less investors

  • 13. 
    Mr. Wells owns a card shop. Because baseball cards have declined in popularity his business is struggling. He decides he has to sell his house to pay off his business debts.

  • Sole Proprietorship
  • Partnership
  • Corporation

  • 14. 
    Stephen and Mike start a consulting service to help businesses manage their trademarks and patents. They are the only partners, sharing equally in the work, profits, and losses.

  • Limited Partnership
  • Limited Liability Partnership
  • General Partnership

  • 15. 
    The only role that George playsin the partnership is to collect profits or bear losses based on the amount of funds he contributed.

  • Limited Liability Partnership
  • General Partnership
  • Limited Partnership

  • 16. 
    Someone who wants to control every aspect of their business should form this type of business.

  • Sole Proprietor
  • Partnership
  • Corporation

  • 17. 
    Maria is using her savings to open a shop selling clothing. What type of business is it?

  • Sole Proprietorship
  • Partnership
  • Corporation

  • 18. 
    Owned by two or more individuals.

  • Proprietorship
  • Partnership
  • Corporation
  • None of the above

  • 19. 
    A _____ is the right or license to sell a company's product or service at a designated location; an example would be McDonalds.

  • franchise
  • partnership
  • sold prprietorship
  • corporation

  • 20. 
    Which of the following is a type of business which operates as a separate legal entity?

  • corporation
  • franchise
  • partnership
  • sole partnership

  • 21. 
    One disadvantage of sole proprietorship includes

  • owner keeps all the profit
  • owner has complete control
  • no legal requirements to set up
  • personalized services to customers
  • owners have unlimited liability

  • 22. 
    Which is the simplest form of business organization?

  • sole proprietorship
  • partnership
  • franchise
  • none of the above

  • 23. 
    Which of the following statement on a sole proprietor is INCORRECT?

  • He enjoys privacy in conducting the business.
  • He may keep all his business profit.
  • He enjoys separate legal personality.
  • It is less hassle to register a sole proprietorship.
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