6 Functions of Business

Collecting money from customers, paying taxes, and processing payroll checks are all classified as which type of function?

• Accounting

• Human Resources

• Information Technology

• Operations

Promoting, distributing, and pricing products are all classified as which type of function?

• Accounting

• Human Resources

• Management

• Marketing

What is an advantage of a franchise over a sole proprietorship?

• Franchisees can sell stock to start up the business.

• Franchisees do not have to work in the business.

• Parent company provides training and support to franchisee.

• Parent company will pay all of the franchisee's start up costs.

How is a corporation different from a sole proprietorship and a partnership?

• Corporations are easier to start.

• Corporations do not require a charter

• Corporations provide limited owner liability.

• Corporations provide lower owner taxes.

How are a franchise and a sole proprietorship alike?

• Can sell stock to raise money

• Easy to start the business

• Owner keeps all profits

• Require a contract to start

When comparing the four main business types, which has the most risk and rewards for an individual?

• Corporation

• Franchise

• Partnership

• Sole proprietorship

When comparing the four main types of businesses, which has the BIGGEST DISADVANTAGE when it comes to paying taxes?

• Corporation

• Franchise

• Sole Proprietorship

• Partnership

Steven and his brothers want to start a plumbing business together. What is an advantage of organizing the business as a partnership rather than a corporation?

• Partnerships can be started up quickly.

• Partnerships can issue stock to raise money.

• Partnerships have limited legal liability.

• Partnerships need a legal charter to begin.

Ensuring that the organization meets goals, and working with employees to accomplish organizational goals are both classified as which type of function?

• Accounting

• Human Resources

• Management

• Marketing

Hiring, firing, and managing the company benefits and educational opportunities for employees are all classified as which type of function?

• Accounting

• Human Resources

• Management

• Marketing