Business Ownership Quiz 10 question

What is the most common form of business ownership?

• Partnership

• Corporation

• Sole Proprietorship

• Limited Liability Company

Which form of business ownership offers the greatest freedom from government regulation?

• Partnership

• Corporation

• Sole Proprietorship

• Limited Liability Company

In a partnership, how are profits and losses generally split?

• Equally among partners

• Based on percentage of ownership

• Only the general partner receives profits

• Profits and losses are not split

What is the main advantage of a corporation?

• Limited liability

• Easier to raise capital

• Full control over the business

• Less government regulation

What is a closely held corporation?

• A corporation owned by the government

• A corporation with a large number of shareholders

• A corporation owned by a few persons or a family

• A corporation with limited liability

What is the main advantage of buying an existing business?

• Existing customers and procedures

• Lower start-up costs

• No need for financial arrangements

• No staff problems

What is a disadvantage of a family business?

• High level of commitment and loyalty

• Difficulty in obtaining non-family help

• Separation of business and private life

• Ability to make good business decisions

What is the initial franchise fee?

• The fee paid to purchase a franchise

• The fee paid for advertising

• The fee paid to the franchisor for management assistance

• The fee paid for equipment and supplies

What is an advantage of owning a franchise?

• More freedom to make decisions

• Lower start-up costs

• Consistency in products or services

• Ability to terminate the franchise agreement

What is a disadvantage of owning a franchise?

• Higher profits

• More freedom to make decisions

• Ability to terminate the franchise agreement

• Less control over the business