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WorksheetsH. Entrepreneurship I - Unit 1 - 1.05
Total questions: 20
Worksheet time: 10mins
What do business owners consider when they select a business ownership structure?
Product versatility, financial needs, and advertising strategies
Personal circumstances, type of business, and product mix
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:
Corporation
Partnership
Sole proprietorship
Cooperative
Larry, Jack, and Jason were college friends who wanted to start a business. Larry has creative ability, Jack’s expertise is selling, and Jason’s expertise is management. However, each has limited capital. The ideal business ownership for these young men is a
merger
franchise
partnership
corporation
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
Ginger and Sandy plan to open a florist shop. Ginger 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 Ginger?
general
private
nonprofit
limited
The Scott Company decided to sell stock to raise capital. Under what form of business organization does the company operate?
Cooperative
Corporation
Partnership
Sole proprietorship
What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public?
"C"
Franchise
Private
Limited
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.
private
"S"
"C"
limited
What type of corporation sells millions of shares and must furnish complete information about its earnings, assets, and debts?
"S"
"C"
private
limited
The American Red Cross is an example of a(n) ___________ corporation.
"C"
"S"
hybrid
nonprofit
One of the characteristics of the form of business ownership known as an LLC is that
the IRS collects taxes based on the LLC’s gross income.
this kind of business can last indefinitely.
it is required to have at least three owners (members).
the owners’ personal property cannot be taken to pay the business’s debts.
One reason a physicians’ practice might form a partnership as an LLP is to
protect innocent partners from the malpractice of another partner.
ensure that the business experiences unlimited liability.
permit the general public to purchase licensing rights in the practice.
take advantage of higher dividend returns on shares of its stock.
Jenny 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
a partnership agreement
licensing
franchising
multi-level marketing
Dylan 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?
Business-format franchise
Product trade-name franchise
sole proprietorship
private corporation
Which of the following is a characteristic of a product trade-name franchise:
It is owned by shareholders.
It is not open to the public.
The franchisee can choose the name of the business.
The franchisee has unlimited liability.
Sadie 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
master licensee
host franchise
piggyback franchise
strategic alliance
Allie 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
multi-level marketing
strategic partnering
product licensing
product trade-name franchising
Illegally run organizations that emphasize the collection of high fees from potential product distributors are often referred to as
pressure-cooker tactics
pyramid schemes
marketing rackets
deceptive advertising gimmicks
Mebane Sporting 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
limited joint-venture contract
licensing agreement
sole proprietorship
product trade-name contract
Which of the following statements is true regarding joint ventures:
An independent attorney must always be consulted before signing a joint-venture agreement.
Large corporations are the only business structures that can benefit from joint ventures.
Joint ventures are used only when it is necessary to raise a lot of capital.
Joint-venture arrangements are usually short-term relationships.
