Name ___________________________ Class _____________________ Date __________
CHAPTER
8
QUIZ A
Sole Proprietorships
3
SECTION 1
A. Key Terms and Concepts
Directions: Match the terms with the descriptions. Write the letter of the correct answer in the
blank provided. Not all of the choices will be used.
a. fringe benefits
1. a business owned and managed by a single
b. sole proprietorship
individual
c. zoning laws
2. an authorization from the local government to
d. business license
carry on an enterprise
e. liability
3. regulations cities and towns use to designate
f. business organization
separate areas for businesses
g. regulations
4. the legal obligation to pay debts
h. debt forgiveness
5. payments to employees other than wages or
salaries
6. the ownership structure of a company
B. Main Ideas
Directions: Write the letter of the correct answer in the blank provided.
7. If a sole proprietorship fails, the owner of the business
a. must pay all the business debts.
c. must pay off the investors.
b. has to do a lot of legal work to
d. must wait 10 business days before
close the business.
starting another business.
8. Which of the following is true of sole proprietorships?
a. They have only one employee.
c. They must have a business license.
b. They are owned and managed
d. They don’t pay fringe benefits to
by an individual.
employees.
9. A major disadvantage of the sole proprietorship is that
a. the business cannot be sold off if it does well.
b. the business can be difficult to relocate.
c. the sole proprietor may have problems borrowing money from a bank.
d. no one can work for the business owner.
10. A major advantage of a sole proprietorship is that
a. the owner has full authority over business decisions.
b. the owner has no liability for the debts of the business.
c. human capital is unlimited.
d. it is relatively easy to find and keep good employees.
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