Entrepreneurship - Chapter 7.1-7.2

It is important to visit a business you are interested in buying during business hours to observe the business in action.

• True
• False

the person who PURCHASES a franchise

• franchisor
• franchisee

weekly or monthly payments made by the local owner to the franchise company

• franchise fee
• startup costs
• royalty fee
• advertising fee

______________ is the most common form of U.S. business ownership.

• Corporation
• Limited Liability Company
• Partnership
• Sole proprietorship

Personal assets of shareholders are protected in a __________.

• sole proprietorship
• partnership
• limited liability company
• corporation

The following have little government oversight, except:

• partnership
• corporation
• proprietorship
• all of these have a great deal of oversight 

There are more disadvantages working in a family business than in buying an existing business.

• True
• False

The ________ of a corporation is responsible for deciding how much the corporation should pay out in dividends.

• shareholders
• articles of incorporation
• board of directors
• owner

All of the following are common reasons why owners may sell an existing business except: 

• retirement
• new competition
• dispute with a partner
• these are all common reasons

Income being taxed twice is a disadvantage of a ____________.

• corporation
• proprietorship
• s corp
• partnership