ENTRE I Unit 1

Which term refers to a legal entity that is separate from its owners and can own property, incur debt, and be sued?

• Partnership

• Corporation

• Sole proprietorship

• Franchise

What is a merger?

• The process of starting a new business

• The combination of two or more companies into one

• The sale of a business to a franchisee

• The dissolution of a partnership

Which of the following best defines a limited-liability company (LLC)?

• A business owned by the government

• A business structure that offers limited liability to its owners

• A type of corporation with unlimited liability

• A business owned by a single person

What is a business-format franchise?

• A franchise that only sells products

• A franchise that provides a complete method for operating the business

• A franchise that is owned by the government

• A franchise that does not use a trade name

Which of the following is a purpose of forming a partnership?

• To avoid sharing profits

• To combine resources and expertise

• To limit the number of owners

• To increase government control

Which of the following is a type of partnership arrangement?

• General partnership

• Sole proprietorship

• Corporation

• Franchise

Which of the following is an advantage of a sole proprietorship?

• Limited liability

• Complete control by the owner

• Double taxation

• Shared decision-making

Which of the following businesses would most likely use a sole proprietorship form of ownership?

• A large manufacturing company

• A local bakery

• A national retail chain

• A multinational corporation

Which of the following is a way in which corporations can grow?

• By merging with other companies

• By limiting the number of owners

• By reducing their product line

• By dissolving the business

Which of the following is an advantage of a corporation?

• Unlimited liability for owners

• Ability to raise large amounts of capital

• Simple to form and dissolve

• Complete control by one person