AFM 131 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS
Business
an activity that you intend to carry on for profit
Mixed economy
where some allocation of resources are made by market, and some are made by
various levels of government that play an active role in the economy
Crown Corporation
Company owned by federal or provincial government (LCBO/CANADA POST)
Privatization
sale of publicly-owned corporation (crown corporation - government do so to reduce
their role in economy)
Small business
organization that is:
* independently owned and operated
* not dominant in its field
* meets certain standards of size (1 to 99 employees)
The form of business ownership that usually requires the most detailed record
keeping is the:
corporation
partnership
, franchise
sole proprietorship
corporation
Which of the following is TRUE about a sole proprietorship?
1. Of the three major forms of business ownership, sole proprietorships are
usually the most difficult type of business to establish.
2. A major advantage of sole proprietorships is that an owner has limited liability
for the debts incurred in their business.
3.The profits of a sole proprietorship are taxed as the personal income of the
owner.
4. The first step in starting a sole proprietorship is to fill out an article of
incorporation and file it with the federal government.
The profits of a sole proprietorship are taxed as the personal income of the owner.
Sole Proprietorship (Advantages)
owned and operated by one persian, and exists once you start selling a
product/service
Easy to set up(only need to complete a business registration to start)
COMPLETE SOLUTIONS
Business
an activity that you intend to carry on for profit
Mixed economy
where some allocation of resources are made by market, and some are made by
various levels of government that play an active role in the economy
Crown Corporation
Company owned by federal or provincial government (LCBO/CANADA POST)
Privatization
sale of publicly-owned corporation (crown corporation - government do so to reduce
their role in economy)
Small business
organization that is:
* independently owned and operated
* not dominant in its field
* meets certain standards of size (1 to 99 employees)
The form of business ownership that usually requires the most detailed record
keeping is the:
corporation
partnership
, franchise
sole proprietorship
corporation
Which of the following is TRUE about a sole proprietorship?
1. Of the three major forms of business ownership, sole proprietorships are
usually the most difficult type of business to establish.
2. A major advantage of sole proprietorships is that an owner has limited liability
for the debts incurred in their business.
3.The profits of a sole proprietorship are taxed as the personal income of the
owner.
4. The first step in starting a sole proprietorship is to fill out an article of
incorporation and file it with the federal government.
The profits of a sole proprietorship are taxed as the personal income of the owner.
Sole Proprietorship (Advantages)
owned and operated by one persian, and exists once you start selling a
product/service
Easy to set up(only need to complete a business registration to start)
