E - OBJ 1.05 Review

“To form my business, I used all of my savings and borrowed from the bank, and I’m personally liable for all of the debts.” This is an example of which of the following forms of business ownership:

• Sole proprietorship

• Partnership

• Corporation

• Cooperative

John, Robert, and Charles were college friends who wanted to start a business. John has creative ability, Robert’s expertise is selling, and Charles’ expertise is management. However, each has limited capital. The ideal business ownership for these young men is a

• Partnership

• merger

• franchise

• corporation

The Scott Company decided to sell stock to raise capital. Under what form of business organization does the company operate?

• Corporation

• Partnership

• Cooperative

• Sole proprietorship

The American Red Cross is an example of a(n) ___________ corporation.

• nonprofit

• hybrid

• "S"

• "C"

Wendy’s sells the right to operate its restaurants to individuals who meet the company’s criteria. The arrangement between Wendy’s and these individuals is an example of

• franchising.

• multi-level marketing.

• a partnership agreement.

• licensing.

ABC Specialty Wear is the only company that has written permission to use a national football team’s logo on its sportswear. This is an example of a

• licensing agreement.

• product trade-name contract.

• sole proprietorship.

• limited joint-venture contract.

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

• Personal circumstances, financial needs, and type of business

• Personal circumstances, type of business, and product mix

• Product versatility, financial needs, and advertising strategies

• Product versatility, advertising strategies, and personal circumstances