Intro to Bus Exam Chapters 5-9

What is a Sole Proprietorship?

• A business owned by two or more individuals

• A legal entity separate from its owners

• A business owned and usually managed by one person

• A cooperative business model

What percentage of U.S. businesses are Sole Proprietorships?

• 8%

• 20%

• 72%

• 44%

Which of the following is NOT an advantage of Sole Proprietorship?

• Ease of starting and ending the business

• Unlimited liability

• Pride of ownership

• Retention of company profits

What is a key disadvantage of Partnerships?

• Unlimited liability

• Division of profits

• Longer survival

• No special taxes

In a General Partnership, who shares in operating the business and assuming liability?

• Only the limited partners

• Only the general partners

• All partners

• The shareholders

Which type of corporation provides limited liability to its owners?

• Sole Proprietorship

• Partnership

• Conventional Corporation

• Cooperative

What is an advantage of Corporations?

• Limited liability

• Unlimited life span

• Ability to raise more money for investment

• All of the above

What is a disadvantage of Franchises?

• Shared profits

• Nationally recognized name

• Management assistance

• Lower failure rate

What is a Merger?

• The purchase of one company by another

• The joining of two firms to form one company

• A cooperative effort among businesses

• A type of franchise agreement

What is an Intrapreneur?

• An entrepreneur who starts their own business

• A creative person who works within a corporation

• A micropreneur managing a small business

• An investor in new businesses