Classification of Business

What type of business activity does a grocery store belong to?

• Manufacturing

• Merchandising

• Service

• Cooperative

A business that assembles cellphones from parts is an example of:

• Manufacturing

• Merchandising

• Service

• Cooperative

Which of the following is NOT an advantage of sole proprietorship?

• Easy to form

• Shared management

• Full control

• Prompt decision-making

Which business entity involves shared ownership and divided profits?

• Corporation

• Sole proprietorship

• Partnership

• Cooperative

What is a disadvantage of a corporation?

• Easy to dissolve

• Unlimited liability

• Double taxation

• Simple management

What type of business activity is a cleaning service company?

• Manufacturing

• Service

• Merchandising

• Cooperative

Which business entity gives members both ownership and access to services?

• Franchise

• Corporation

• Cooperative

• Partnership

Which of the following is a feature of franchising?

• Owned entirely by one person

• Government-funded

• Business model is licensed from another company

• Unlimited liability

Which business type is subject to “double taxation”?

• Sole proprietorship

• Corporation

• Partnership

• Cooperative

What is the main advantage of a franchise to a franchisee?

• Total independence

• No startup cost

• Proven business model and support

• No need to pay fees