Types of Business Structures

The way a company or firm is structured is called

• sole proprietorship

• business

• business franchise

• business organization

A firm that is owned by two or more individuals, where profits are split

• sole proprietorship

• partnership

• franchise

• corporation

A business organization that is owned and managed by one individual is called a(n)

• sole proprietorship

• franshise

• corporation

• partnership

One of the advantages of a sole proprietorship, is it is easy to start and end. Sole proprietors must obtain a(n) _________, which authorizes them to operate their business.

• application

• business license

• money

• assets

A(n) __________ is a semi-independent that pays fees to a parent company.

• entrepreneur

• owner

• franchise

• general partnership

The advantages of this business type are that the owner is their own boss and gets to keep all the profits.

• partnership

• cooperation

• sole proprietorship

• franchise

Disadvantages for this type of business include: the owner pays for everything, hard to get money to start from the bank, the owner might lack skills & unlimited liability.

• sole proprietorship

• franchise

• corporation

• partnership

What is a major advantage of a business that is a partnership rather than a sole proprietorship?

• The responsibility for the business is shared

• The partners are not responsible for business debts

• The business is easy to set up

• The business is easy to sell

What is a business owned by stockholders/investors but operated by others?

• sole proprietorship

• partnership

• corporation

• franchise

True or False: One of the advantages of a corporation, is it is easy to raise money.

• True

• False