Chapter 6 ENT

More than 3/4 of all U.S. businesses are sole proprietorships.

• True

• False

A partnership does NOT require a contract that outlines the rights and responsibilities of each partner.

• True

• False

Nonprofit corporations can legally charge money for the services they perform.

• True

• False

A local automobile dealership is considered a retailer.

• True

• False

Processors change raw materials into more finished products.

• True

• False

Sole proprietorships have limited liability.

• True

• False

Banks are less likely to lend money to partnerships than to sole proprietorships.

• True

• False

Owners of a partnership share legal and financial responsibility.

• True

• False

A franchise may be operated as a sole proprietorship, a partnership, or a corporation.

• True

• False

Retailers buy large quantities of goods and sell them to other businesses or individuals.

• True

• False