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- 1. Multiple Choice
Which of the following is the definition for sole proprietorshipbusiness investment that involves renting or leasing another successful business modelunincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United Statesunincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firmform of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued - 2. Multiple ChoiceWhich of the following is the definition for Franchisebusiness investment that involves renting or leasing another successful business modelunincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United Statesunincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firmform of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued
- 3. Multiple ChoiceWhich of the following is the definition for Corporation?business investment that involves renting or leasing another successful business modelunincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United Statesunincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firmform of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued
- 4. Multiple ChoiceWhich of the following is the definition for Partnership?business investment that involves renting or leasing another successful business modelunincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm; most common form of business organization in the United Statesunincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firmform of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, and to sue and be sued
- 5. Multiple ChoiceWhich of the following is an advantage of a sole proprietorshipeasy to start upDecisions do not require the approval of a co-owner, boss, or other "higher-upthe owner can keep the profits of successful management without having to share them with other owners.All the other options
- 6. Multiple ChoiceWhich of the following is a disadvantage of a sole proprietorship?it is easy to starthe owner is personally and fully responsible for all losses and debts of the business. If the business fails, the owner’s personal possessions may be taken away to satisfy business debts.requires a partnerit is easy to raise the financial capital to start
- 7. Multiple ChoiceWhich of the following is an advantage of a partnership?they are hard to startmanagement is hard between two or more peoplepartnerships can usually attract financial capital more easily than proprietorships.They are inefficient.
- 8. Multiple ChoiceWhich of the following is a disadvantage of a partnership?If one partner causes the firm to suffer a huge loss, each partner is fully and personally responsible for the loss.When a partner dies or leaves, the partnership must be dissolved and reorganized as a new partnership if the remaining partners want to stay in business.the potential for conflict between partners.all the options are disadvantages
- 9. Multiple ChoiceWhich of the following is a disadvantage of a corporation?it is easy to raise financial capital using stocks, bonds, or loans.the double taxation of corporate profits. Profits are taxed the first time when the corporation pays income taxes. The profits are taxed a second time when shareholders pay taxes on their dividends.it is easy to get a charter to start a corporation.Owners and shareholders have total control over what happens with the business.
- 10. Multiple ChoiceWhich of the following is an advantage of a corporation?all other answers are advantages.the corporation provides limited liability for its owners. This means that the corporation itself, not its owners, is fully responsible for its obligations.the corporation's board of directors can hire professional managers to run the firm. This means that the corporation's owners, its stockholders, can own a portion of the corporation without having to know much about the business itself.unlimited life, meaning that the corporation continues to exist even when shareholders sell their ownership shares of stock to someone else. Because the corporation is recognized as a separate legal entity, the name of the company stays the same, and the corporation continues to do business.
- 11. Multiple ChoiceWhich of the following is an advantage of a Franchise?a nationwide network that had a respected product, a deep product line, excellent quality standards, nationwide advertising, and professional advice whenever needed.the ease of raising financial capital through stocks, bonds, and loans.the ease of management between two or more partners.the limited liability protection of a person's assets if the company fails.
- 12. Multiple ChoiceWhich of the following is a disadvantage of a Franchise?the expense of purchasing the rights to a franchise can be high.the cost to terminate a franchise before its term is high.not owning the company, just the franchise.all other options are disadvantages.
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