Econ Business Organizations

Which of the following is an advantage of a sole proprietorship

• easy to start up
• Decisions do not require the approval of a co-owner, boss, or other "higher-up
• the owner can keep the profits of successful management without having to share them with other owners. 
• All the other options

In what type of business organization is each owner personally liable for all business debts, even if the debts were created by other owners?

• corporation
• partnership
• proprietorship
• S corporation

The easiest form of business to start and end is a(n)

• limited liability partnership
• Corporation

• franchise
• sole proprietorship

Which of the following is a disadvantage of a Franchise? 

• the expense of purchasing the rights to a franchise can be high.
• the cost to terminate a franchise before its term is high. 
• not owning the company, just the franchise. 
• all other options are disadvantages.

Sara’s Hair Palace is a small, locally owned beauty salon in Sterling. This represents what type of business?

• corporation
• partnership
• sole proprietorship

Susie is starting her own lemonade store. What economic term would best describe Susie and what does that term mean? 

• Consumer – a person who uses or consumes goods
•  Partnership –  partner in the lemonade stand
• Entrepreneur-  - person who takes a risk to start a new company

Dan has $5,000. He wants to invest his money in the type of business that has the least amount of liability. In which type of business should he invest?

• corporation
• partnership
• proprietorship

A business partnership has ___________ who share the risks and the profits.

• One owner
• No more than three owners
• Two or more owners
• Five or more owners

In which of the following would one person be responsible for all of the risks but also receive all of the profits?

• Corporation
• Propreitership
• Partnership
• Dual owner business

What do we call a person who is willing to take the risks of starting a business in order to make a profit?

• Proprieter
• Partner
• Entrepreneur
• Incorporater