Business Organizations and Franchising with Circular Flow Quiz

Which type of business is owned and operated by a single individual?

• Partnership

• Sole Proprietorship

• Corporation

• Cooperative

A legal entity that is owned by shareholders and operates separately from its owners is called:

• Partnership

• Sole Proprietorship

• Corporation

• Franchise

What type of business organization is owned by its members for mutual benefit?

• Corporation

• Cooperative

• Sole Proprietorship

• Multinational

Which of the following best describes a franchise?

• A business where ownership is tradable through the stock exchange

• A business model where a franchisor licenses its brand to a franchisee

• A legal entity owned by two or more people

• An international company operating in multiple countries

Which organization oversees the protection of stockholders' rights in corporations?

• Department of Trade and Industry (DTI)

• Securities and Exchange Commission (SEC)

• Bureau of Internal Revenue (BIR)

• Cooperative Development Authority (CDA)

A company that operates in multiple countries is referred to as:

• Cooperative

• Multinational

• Sole Proprietorship

• Conglomerate

A sole proprietorship is the easiest form of business to establish.

• true

• false

Partnerships are protected by the Securities and Exchange Commission (SEC).

• true

• false

A corporation can raise capital through the stock exchange.

• false

• true

Consumers of cooperatives are not considered its members.

• false

• true