Entrepreneurship - Ch. 7 Review (Types of Ownership)

A _____ is a legal agreement that gives an individual the right to market a company's products or services in a particular area.

• franchise

• LLC

• sole proprietorship

• partnership

The initial franchise fee is the amount the local franchise owner pays in return for the right to run the franchise.

• true

• false

_____ are the costs associated with beginning a business.

• Start down costs

• Start up costs

• Expense ratios

• Price per earnings

A_______________ is a business that is owned and operated by one person.

• cooperative

• sole proprietorship

• limited partnership

• creative proprietorship

An owner who has full responsibility for all debts and actions of the business is said to have_____________.

• liability protection

• unlimited liability

• equity

• limited partnership

A ___________ is an unincorporated business with two or more owners.

• venture

• proprietorship

• partnership

• corporation

A ___________ is a business registered by a state that operates apart from its owners.

• firm

• proprietorship

• company

• corporation

_______________ are the owners of the corporation.

• board of directors

• founders

• shareholders

• stockbrokers

A _________________ is a legal entity that makes money for reasons other than the owners' profit.

• limited corporation

• nonprofit corporation

• Subchapter S corporation

• C-corporation

The value of a corporation is divided into equal units called shares of stock.

• True

• False