Types of Businesses WS 1

A business entity is _____

• An organization using economic inputs or resources to supply goods or services to consumers in exchange for cash or kinds

• A business that is owned by a group of people and is run for their mutual interest or benefit

• A business providing intangible products

• A business owned and operated by a single person

_____ provides intangible products.

• Manufacturing business

• Service business

• Merchandising business

• Sole proprietorship

Another name for a merchandising business is _____

• Cooperative business

• Manufacturing business

• Buy and sell business

• Service business

_____ is formed, owned, and operated by a single person.

• Sole proprietorship

• Partnership

• Multinational corporation

• Corporation

A key characteristic of a partnership business is that it is _____

• Owned by a group of people for their mutual interest

• Owned by a single person

• Owned and operated by two or more members

• Owned by investors or shareholders

In _____ type of business do the business organization and the owner have separate legal personalities?

• Service business

• Corporation

• Partnership

• Sole proprietorship

A characteristic of multinational corporations (MNCs) is that they have _____ in foreign countries.

• They are owned by a single person

• They operate only in their home country

• They have huge investments in foreign countries

• They provide intangible products

A franchise is a business where individuals buy some businesses with the condition of giving a percentage of the profit to the parent company.

• A business owned by a single person

• A business that provides intangible products

• A business where individuals buy some businesses with the condition of giving a percentage of the profit to the parent company

• A business owned by a group of people for their mutual interest

_____ is required to form a limited liability company (LLC).

• A single owner

• A franchise agreement

• A written agreement

• A board of directors

A cooperative business is _____

• A business owned by investors or shareholders

• A business owned by a group of people and run for their mutual interest

• A business providing intangible products

• A business that purchases products at wholesale prices and sells them at retail prices