Chapter 4 Business Ownership & Registration

What’s the most common form of business ownership in the U.S.?

• Sole proprietorship

• Partnership

• Corporation

• Limited Liability Company (LLC)

Which type of partnership has unequal liability among partners?

• Limited partnership

• General partnership

• Joint venture

• Cooperative

What type of business ownership involves buying the rights to use a company’s name and system?

• Franchise

• Sole Proprietorship

• Partnership

• Corporation

Which form of ownership is considered a separate legal entity?

• Corporation

• Sole Proprietorship

• Partnership

• Cooperative

Who owns a corporation through shares of stock?

• Stockholders

• Employees

• Managers

• Creditors

What does SBA stand for?

• Small Business Administration

• Society of Business Analysts

• State Banking Association

• Student Benefits Agency

What type of capital involves giving up ownership in exchange for funding?

• Equity capital

• Debt capital

• Working capital

• Retained earnings

What’s the term for money borrowed that must be repaid with interest?

• Debt capital

• Equity capital

• Revenue

• Grant

Which investors are wealthy individuals seeking high returns in startups?

• Angel investors

• Venture capitalists

• Crowdfunding platforms

• Banks

What’s the difference between short-term and long-term loans?

• Short-term loans mature in less than a year; long-term loans take more than a year.

• Short-term loans have higher interest rates than long-term loans.

• Long-term loans are always unsecured, while short-term loans are always secured.

• Short-term loans are only for individuals, while long-term loans are only for businesses.