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:

John, Robert, and Charles were college friends who wanted to start a business. John has creative ability, Robert’s expertise is selling, and Charles’ expertise is management. However, each has limited capital. The ideal business ownership for these young men is a:

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

Lois and Lora plan to open a florist shop. Lois is unable to devote full time to the daily operations of the shop but wishes to provide financial support. Which form of business

partnership is most likely to appeal to Lois?

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

What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public?

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

What type of corporation sells millions of shares and must furnish complete information about its earnings, assets, and debts?

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

One of the characteristics of the form of business ownership known as an LLC is that:

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

Wendy’s sells the right to operate its restaurants to individuals who meet the company’s criteria. The arrangement between Wendy’s and these individuals is an example of:

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?

Which of the following is a characteristic of a 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:

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

Illegally run organizations that emphasize the collection of high fees from potential product distributors are often referred to as:

ABC Specialty Wear is the only company that has written permission to use a national football team’s logo on its sportswear. This is an example of a:

Which of the following statements is true regarding joint ventures?

The process of taking possession of something: (e.g., acquiring another business by purchasing it)

A document outlining the financial status of a business:

Anything of value that a business or individual owns:

A consumer organization that monitors complaints against businesses:

A group of people chosen to govern the activities of a corporation:

A franchise arrangement in which the franchisee must operate under the trade name of the parent company that provides continuous assistance in setting up and operating the business:

A form of business ownership that is considered a separate legal entity from its owners; can be owned by unlimited stockholders and is susceptible to dual taxation; a type of public corporation:

Assets of a business:

A percentage of the total sale amount paid to the individual or business that makes the sale:

A sum of money paid to an investor or stockholder as earnings on an investment:

A form of business growth in which a company extends its operations or facilities using new capital or reinvested funds:

A contractual agreement between a parent company and a franchisee to distribute goods or services:

One who buys the right to sell the goods or services of the parent company: (franchisor)

A method of distributing recognized goods and services through a legal agreement between two parties:

A type of partnership agreement in which all partners are liable for a business's losses; also known as ordinary partnership:

The buyer of copyrighted, patented, or trademarked material:

A business structure that requires the authorization or permission from an owner to another entity to use trademarked, copyrighted (e.g., logo, name), or patented material for a specific activity, during a specific time period, for the profit of both parties:

The owner of copyrighted, patented, or trademarked material:

A form of business ownership in which members of a corporation experience limited liability; there is limited taxation on company income and limited life for the business entity:

A form of business ownership that is generally used by business professionals for the purpose of protecting innocent partners from the malpractice of the other partners:

A legal business structure that primarily operates for the purpose of serving others, not to make a profit; income is used to cover operational expenses; can be exempt from paying some or all taxes:

A written document signed by members of a limited liability partnership or limited liability company that specifies the terms of the business arrangement:

A form of business ownership in which the business is owned by two or more persons:

A form of ownership in which a retail franchise operates within the facilities of another store; often referred to as the host:

An economic system in which individuals and groups, rather than the government, own or control the means of production; also known as free market economy, private profit system, market system, capitalistic system, or free enterprise system:

An illegal form of multi-level marketing in which emphasis is placed on collecting initial fees from as many people as possible:

Fees paid to a parent company that are often based on a percentage of the franchise's profits; a percentage of actual sales that a licensee pays to a licensor; usually anywhere from 5 to 15 percent:

Owners of stock; also known as shareholders: (Hint: there are two correct answers)

Requirement that business owners be responsible for paying business debt; personal assets can be used to pay the debt:

A franchise arrangement based on an independent sales relationship between a franchisor and franchisee to stock and sell a specific line of goods; also known as dealership or exclusive distributorship: