Types of Business Ownership

A form of business ownership that operates under a charter issued by the state is called a(n):

• corporation.

• sole proprietorship.

• general partnership.

• entrepreneur.

Joan borrowed $10,000 from a relative to start her own business. Assuming she takes all responsibility for the company's financial risks, the company is most likely a:

• sole proprietorship.

• limited partnership.

• corporation.

• partnership.

A business that is owned by two or more people who share the risk of loss and the chance for profit is known as a:

• partnership.

• sole proprietorship.

• franchise.

• corporation.

The business agreement under which a business distributes the goods or services of a parent company is called a:

• franchise.

• corporation.

• partnership.

• proprietorship.

Which of the following is a characteristic of a business-format franchise:

• continuous assistance is provided by the franchisor.

• products are bought directly from the supplier.

• it is the least popular franchise arrangement.

• the name of the business is chosen by the franchisee.

What type of business is owned by stockholders who share the business's profits?

• Corporation

• Partnership

• Cooperative

• Sole Proprietorship

A type of business ownership in which one or more of the owners does not have full liability is called a:

• limited partnership.

• general partnership.

• sole proprietorship.

• service organization.

To sell sweatshirts, jackets, and T-shirts imprinted with ABC University's logo, the Collegiate Sportswear Company pays royalties to the university. What type of business ownership does this situation exemplify?

• Licensing agreement

• Business-format franchise.

• Multi-level marketing

• General partnership

Which of the following is a benefit of the business-format franchise arrangement?

• Reduced risk of failure

• Strict operating hours

• Limited number of vendors

• Uniform store appearance

What do business owners consider when they select a business ownership structure?

• Personal circumstances, type of business, and product mix

• Product versatility, financial needs, and advertising strategies

• Personal circumstances, financial needs, and type of business

• Product versatility, advertising strategies, and personal circumstances