PRINBMF - Chapter 6 Business Structures

A partnership is owned by two or more people who own shares of stock in the company

• true
• false

A sole proprietorship must be chartered by the state in which it is located.

• true
• false

A partnership is owned by two or more people who own shares of stock in the company.

• true
• false

A corporation is a legal entity with the state and can run on its own separate from its owners.

• true
• false

Managers have to plan, control, lead, staff, and organize.

• true
• false

Determining what work has to be done and who is to do it is called organization.

• true
• false

The person or group who receives a franchise is called a franchisee.

• true
• false

The part of the corporate profits each stockholder receives is called a dividend.

• true
• false

The form of business that represents two-thirds of U.S. businesses is the

• corporation
• partnership
• sole proprietorship
• cooperative

A form of business that is based on written agreement about how to manage it and how to share profits is a

• corporation
• partnership
• sole proprietorship
• cooperative