LAW122: Chapter 21-Questions and All
Correct Answers 2026 Updated.
Types of Business Organizations - Answer -sole proprietorship
-general proprietorship
-limited partnership
-corporations
Sole Proprietorship - Answer -A business owned by one person
-no separation between business and owner (income, obligations, debts, loss)
-suitable for small businesses
Advantages of Sole Proprietorship - Answer -simple start
-tax
Disadvantages of Sole Proprietorship - Answer -unlimited personal liability
-money raised only by personal borrowing
-both problems grow as business grows
Legal Requirements for Sole Proprietorships - Answer -provincial registration for business
name
-business license may be required
Three Main Types of Partnerships - Answer -General partnership
-limited liability partnership
-limited partnership
General Partnership - Answer -a partnership exists when two or more people carry on
business together with a view to a profit
-creation automatic when relationship begins
Factors Indicating Partnerships - Answer -sharing profits or losses
-jointly owning property or jointly contributing capital
-involvement in business and management
-joint authority for contracts and bank accounts
Correct Answers 2026 Updated.
Types of Business Organizations - Answer -sole proprietorship
-general proprietorship
-limited partnership
-corporations
Sole Proprietorship - Answer -A business owned by one person
-no separation between business and owner (income, obligations, debts, loss)
-suitable for small businesses
Advantages of Sole Proprietorship - Answer -simple start
-tax
Disadvantages of Sole Proprietorship - Answer -unlimited personal liability
-money raised only by personal borrowing
-both problems grow as business grows
Legal Requirements for Sole Proprietorships - Answer -provincial registration for business
name
-business license may be required
Three Main Types of Partnerships - Answer -General partnership
-limited liability partnership
-limited partnership
General Partnership - Answer -a partnership exists when two or more people carry on
business together with a view to a profit
-creation automatic when relationship begins
Factors Indicating Partnerships - Answer -sharing profits or losses
-jointly owning property or jointly contributing capital
-involvement in business and management
-joint authority for contracts and bank accounts
