Name
Date
Period
Econ Unit 3: Business Structure Basics Problem Set
Sole Proprietorship
1.
How does a sole proprietorship work?
2.
Describe the advantages of a sole proprietorship.
3.
Describe the disadvantages of a sole proprietorship.
4.
What are three tax advantages to owning a sole proprietorship (be specific)?
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Partnership
1.
List and describe the two types of partnerships and how they work.
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2.
Describe the advantages of a partnership.
3.
Describe the disadvantages of a partnership.
4.
What is liability?
5.
What are three tax advantages of partnerships?
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Corporations
1.
How does a corporation work?
2.
Explain how a corporation protects its owners from liability?
3.
Elaborate on how corporations make money.
4.
Describe the advantages of a corporation.
5.
Describe the disadvantages of a corporation.
6.
Explain how taxes work for a corporation.
7.
What is the difference between a “c” and “s” corporation?
8.
What is a “LLC” and how is it related to the other three types of business organizations.
Combined Questions
1.
What are three major differences between a sole proprietorship, partnership, and a corporation?
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2.
What are three major similarities between a sole proprietorship, partnership, and a corporation?
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3.
Which business organization appeals to you the most? Why?
4.
Which business organization appeals to you the least? Why?