WorksheetsBusiness Ownership
Total questions: 26
Worksheet time: 13mins
The fee a franchisee continually pays the franchisor to keep operating the franchise is called a _____.
commission
royalty payment
kickback
down payment
Money and other assets owned by a business.
franchise fee
profits
capital
royalties
When entrepreneurs want to conduct business in a name other than their own, they must _____.
legally change their name
purchase the corresponding domain name
register a valid employer ID number
obtain a DBA license
In a _____ all partners have unlimited liability.
corporation
general partnership
silent partnership
limited partnership
Document describing the purpose, place of business, and other details of a corporation.
shares of stock
charter
business plan
partnership agreement
The owners of which of the following carry the risk of unlimited liability?
sole proprietorship
subchapter S corporation
partnership
public corporation
A ________ is a legal entity separate from its owners.
sole proprietorship
corporation
silent partner
franchise
People who have shares of ownership in a company are called _____.
board members
silent partners
shareholders
stock brokers
The company that sells the rights of a franchise is the_________.
franchisee
franchisor
host company
sponsor
A for-profit business that is owned and operated by a single person is known as a _________.
sole proprietorship
C corporation
subchapter S corporation
partnership
A person who invests in a business but takes no part in the day-to-day operations of the business is called a(n) __________.
franchisee
franchisor
silent partner
entrepreneur
A partnership carries the risk of __________.
high start-up costs
unlimited liability
double taxation
limited start-up capital
A subchapter S corporation is intended for small businesses that have what?
fewer than 50 employees
less than $5 million in revenue
more than 5 years of business experience
fewer than 100 shareholders
The owners of an LLP are called _________.
members
partners
shareholders
investors
One of the advantages of a family-owned business is?
easy financing
state-of-the-art equipment
conflicting interests
flexibility
Most franchises have strict rules of operation that must be followed by the franchisee.
True
False
A sole proprietor is personally responsible for all business debts.
True
False
The tax benefits of a partnership are similar to those of a corporation.
True
False
A business must incorporate in a state where it is physically located.
True
False
Which of the following is a disadvantage of being a sole proprietorship.
you must share the profits with partners
taxes are higher than many other forms of business
you must make every decision yourself
shared responsibility for liabilities
Which of the following is most like a LLP?
LLC
Corporation
Sole Proprietorship
Partnershp
Which of the following requires a charter?
corporation
LLP
LLC
sole proprietorship
A corporation that provides limited liability to its owners and is taxed like a partnership.
sole proprietorshp
LLC
subchapter S corporation
LLP
The organization that regulates the franchising industry.
Department of Commerce
Federal Trade Commission
International Franchise Association
Small Business Association
Department of the federal government dedicated to consumer protection.
Federal Trade Commission
Fair Trade Commission
Small Business Administration
International Franchise Association
Which of the following forms of business is the easiest to start?
corporation
partnership
sole proprietorship
subchapter S corporation
