EntI_On the Up and Up/Own It Your Way

What do business owners consider when they select a business ownership structure?

• Personal circumstances, type of business, and product mix

• Product versatility, financial needs, and advertising strategies

• Personal circumstances, financial needs, and type of business

• Product versatility, advertising strategies, and personal circumstances

“To form my business, I used all of my savings and borrowed from the bank, and I’m personally liable for all of the debts.” This is an example of which of the following forms of business ownership:

• Partnership

• Sole proprietorship

• Corporation

• Cooperative

If all of the individuals who own a business share unlimited liability for the business’s losses, these individuals are part of a(n)

• private corporation.

• general partnership.

• "S" corporation.

• "C" corporation

The Scott Company decided to sell stock to raise capital. Under what form of business organization does the company operate?

• Corporation

• Cooperative

• Partnership

• Sole proprietorship

A type of state-chartered corporation that was developed to help small businesses by taxing them as individuals in a partnership is a(n) __________ corporation.

• "S"

• "C"

• private

• limited

The American Red Cross is an example of a(n) ___________ corporation.

• hybrid

• nonprofit

• "S"

• "C"

One reason a physicians’ practice might form a partnership as an LLP is to

• ensure that the business experiences unlimited liability.

• take advantage of higher dividend returns on shares of its stock.

• protect innocent partners from the malpractice of another partner.

• permit the general public to purchase licensing rights in the practice.

Jake wanted to run his own business but was unsure that he had adequate business skills to be successful. Which type of business would give Jake the help he needs?

• Private corporation

• Sole proprietorship

• Business-format franchise

• Product trade-name franchise

Jane is the owner of a pizza shop associated with a national chain of pizza restaurants. She established her business in a regional supermarket. The pizza shop is referred to as a

• host franchise.

• strategic alliance.

• master license.

• piggyback franchise.

Olivia runs a home-based business that distributes high quality, handmade baskets. She sells the products and earns commissions on the baskets sold by four other basket representatives. This is an example of

• product licensing.

• product trade-name franchising.

• multi-level marketing.

• strategic partnering.