Exploring Business

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

• Franchises can sell stock to start up the business.
• Franchises 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 cost. 

How is a corporation different from a sole proprietorship?

• Corporations are owned by only one person.
• Corporations can sell stock to raise money for the business.
• Sole proprietorship's require a legal charter for the business
• Sole proprietorship's are global businesses.

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 start up quickly.
• Partnerships can issue stock to raise money.
• Partnerships need a legal charter to begin. 
• Partnerships have protection from the government.

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

• Corporation has only one or two owners.
• Corporation is usually owned by one person.
• Corporation requires a legal charter to start.
• The owners of the corporation control the business.

How are 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

Goodwill Industries helps poor and homeless people with the money raised by selling donated products in their stores. Goodwill is classified as what kind of business? 

• Non-profit
• For-profit

Norman and Jones Pet Sitting business is the best pet sitting business in Winston-Salem. How is Norman and Jones Pet Sitting business classified?

• Combination product and service 
• Non-profit
• Product business
• Service business

Homeless shelters, the March of Dimes, Salvation Army, and Food Bank are all classified as which type of business? 

• Combination product and service
• For-profit
• Non-profit
• Product

Beauty Salons, home improvement stores, and drug stores are classified as which type of business? 

• Combination goods and services
• Product business
• Service business
• Non-Profit

What is the difference between needs and wants? 

• Needs are goods and wants are services.
• Needs are necessary for survival and wants are nice to have.
• Needs are nice to have, wants are necessary for survival.
• Needs are services and wants are goods.