Entrepreneurship Ch. 6 - Types of Business Ownership

Franchisees are generally required to pay into a national advertising fund but have no say in how the fees are used.

• True

• False

Advantages of buying an existing business include earning profits faster and having an established customer base.

• True

• False

Purchasing a family business allows you to have an equal vote in all situations.

• True

• False

Private corporations do not sell stock publicly to investors on stock exchanges.

• True

• False

Setting up a corporation is difficult and costly.

• True

• False

Set up to accomplish a specific mission rather than generate a profit.

• Corporation

• Non-profit

• LLC

• Partnership

This type of business pays taxes on their profits and provides personal liability protection for the owners.

• LLP

• Subchapter S Corporation

• Sole Proprietorship

• C Corporation

Which of the following is not taxed like a partnership.

• Subchapter S Corporation

• C Corporation

• LLP

• Limited Partnership

Which of the following is NOT an advantage of buying a franchise?

• Taxed at the corporate rate

• Training provided

• Established company

• Financial advice provided

Which of the following statements describes a general partnership?

• It has one managing partner and one limited partner.

• All partners have unlimited liability.

• It is a legal entity that can buy property.

• It is set up to accomplish a specific mission.