Unit 1-1.05 ENT I

1. A form of business ownership that operates under a charter issued by the state is called 

• 1. Corporation

• 1. Sole proprietorship

• 1. General partnership

• 1. Entrepreneur

1. Joan borrowed $10,000 from a relative to start her own business. Assuming she takes all responsibility for the company's financial risks, the company is most likely a

• 1. Sole proprietorship

• 1. Limited partnership

• 1. Corporation

• 1. Partnership

1. A business that is owned by two or more people who share the risk of loss and the chance for profit is known as a

• 1. Partnership

• 1. Sole Proprietorship

• Corporation

• 1. Franchise

1. The business agreement under which a business distributes the goods or services of a parent company is called a

• 1. Franchise

• 1. Corporation

• 1. Partnership

• 1. Proprietorship

1. Which of the following is a characteristic of a business-format franchise:

• 2. The name of the business is chosen by the franchisee.

• 1. Products are bought directly from the supplier.

• 1. It is the least popular franchise arrangement.

• 1. Continuous assistance is provided by the franchisor.

1. What type of business is owned by stockholders who share the business's profits?

• 1. Partnership

• 1. Corporation

• 1. Cooperative

• 1. Sole Proprietorship

A type of business ownership in which one or more of the owners does not have full liability is called a

• 1. Limited Partnership

• 1. General Partnership

• 1. Sole Proprietorship

• 1. Service Organization

To sell sweatshirts, jackets, and T-shirts imprinted with ABC University's logo, the Collegiate Sportswear Company pays royalties to the university. What type of business ownership does this situation exemplify?

• 1. Licensing Agreement

• 1. Business-Format Franchise

• 1. Multi-Level Marketing

• 1. General Partnership

 Mr. Brown has inherited a small sum of money, and he wants to become a business owner. However, he has a full-time job that he plans to keep and very little time to operate his own business. What type of ownership should he consider?

• 1. General Partnership

• 1. Sole Proprietorship

• 1. Franchise

• 1. Corporation

Which of the following is a benefit of the business-format franchise arrangement:

• 1. Reduced risk of failure

• 1. Strict operating hours

• 1. Limited number of vendors

• 1. Uniform store appearance