Login

What Is Sole Proprietorship: Definition, Advantages & Disadvantages

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

How many people typically work for a sole proprietorship?

Start Your Free Trial To Take This Quiz

As a member, you'll also get unlimited access to over 70,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Free 5-day trial
It only takes a few minutes to set up and you can cancel at any time.
Already registered? Login here for access

1. How does an owner incorporate a sole proprietorship?

2. How does an owner start a sole proprietorship?

Start your free trial to access this entire worksheet
A premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

The most common model for a small business, a sole proprietorship offers advantages and disadvantages to the sole proprietor. This lesson and quiz helps you understand the benefits of operating a sole proprietorship and the limitations and risks of this type of enterprise.

Quiz and Worksheet Goals

In these assessments you'll be tested on:

  • The tax structure for sole proprietorship
  • The process for launching a sole proprietorship
  • The workforce of a sole proprietorship
  • Incorporation requirements for this type of business
  • Rules regarding names of sole proprietorships

Skills Practiced

This quiz and worksheet allows you to test the following skills:

  • Information recall - access your knowledge on the advantages and disadvantages of sole proprietorships
  • Knowledge application - use your knowledge to explain the limited legal requirements for starting a sole proprietorship
  • Making connections - examine how sole proprietors benefit from the tax structure for this type of business

Additional Learning

To learn more, review the accompanying lesson, What is a Sole Proprietorship: Definition, Advantages & Disadvantages. This lesson covers the following objectives:

  • Describe the key advantages of a sole proprietorship
  • Explain the risks and liabilities of sole proprietorships
  • List the challenges involved in expanding this type of business
  • Understand how sole proprietorships offer freedom and flexibility
  • Recognize the pressure and demands sole proprietors face
Support