Types of Business Ownerships

Brea, Robert, and Lincoln are college friends who want to start a business. Brea has creative ability, Robert's expertise is selling, and Lincoln's expertise is management. However, each has limited capital. Their ideal type of business ownership is a

• merger

• partnership

• franchise

• corporation

If all of the individuals who own a business share unlimited liability for the business's losses, these individuals are part of a (n)

• private corporation

• general partnership

• "S" corporation

• "C" corporation

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

• corporation

• cooperative

• partnership

• sole proprietorship

What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public?

• limited

• franchise

• "C"

• private

A type of corporation that was developed to hep small businesses by taxing them as individuals in a partnership is a (n) corporation.

• "S"

• "C"

• private

• limited

What type of corporation sells millions of shares and must provide complete information about its earnings, assets, and debts?

• "C"

• private

• "S"

• limited

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

• hybrid

• nonprofit

• "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

• a partnership agreement

• multi-level marketing

• licensing

• franchising

"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."

• Partnership

• Sole Proprietorship

• Corporation

• Cooperative

Lois and Harper plan to open a florist shop. Lois is unable to devote full time to the daily operations of the shop but wishes to provide financial support. Which form of partnership is most likely to appeal to Lois?

• Private

• Nonprofit

• General

• Limited