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WorksheetsBusiness organizations
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
What do business owners consider when they select a business ownership structure?
a)
Personal circumstances, type of business, and product mix
b)
Product versatility, financial needs, and advertising strategies
c)
Personal circumstances, financial needs, and type of business
d)
Product versatility, advertising strategies, and personal circumstances
2.
“To form my business, I used all of my savings and borrowed from the bank, and I’m
a)
Partnership
b)
Sole proprietorship
c)
Corporation
d)
Cooperative
3.
Brea, Robert, and Lincoln are college friends who want to start a business. Brea has
a)
merger.
b)
partnership
c)
franchise.
d)
corporation.
4.
If all of the individuals who own a business share unlimited liability for the business’s losses, these individuals are part of a(n)
a)
private corporation.
b)
general partnership.
c)
“S” corporation.
d)
“C” corporation.
5.
Lois and Harper plan to open a florist shop. Lois is unable to devote full time to the daily
a)
Private
b)
Nonprofit
c)
General
d)
Limited
6.
The Scott Company decided to sell stock to raise capital. Under what form of business
a)
Corporation
b)
Cooperative
c)
Partnership
d)
Sole proprietorship
7.
What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public?
a)
Limited
b)
Franchise
c)
“C”
d)
Private
8.
A type of corporation that was developed to help small businesses by taxing them as individuals in a partnership is a(n) __________ corporation.
a)
“S”
b)
“C”
c)
private
d)
limited
9.
What type of corporation sells millions of shares and must provide complete information about its earnings, assets, and debts?
a)
“S”
b)
“C”
c)
private
d)
limited
10.
The American Red Cross is an example of a(n) __________ corporation.
a)
hybrid
b)
nonprofit
c)
“S”
d)
“C”
11.
One of the characteristics of the form of business ownership known as an LLC is that
a)
this kind of business can last indefinitely.
b)
it is required to have at least three owners (members).
c)
the IRS collects taxes based on the LLC’s gross income.
d)
the owners’ personal property cannot be taken to pay the business’s debts.
12.
One reason a physicians’ practice might form a partnership as an LLP is to
a)
ensure that the business experiences unlimited liability.
b)
take advantage of higher dividend returns on shares of its stock.
c)
protect innocent partners from the malpractice of another partner.
d)
permit the general public to purchase licensing rights from the practice
13.
Wendy’s sells the right to operate its restaurants to individuals who meet the company’s
a)
a partnership agreement.
b)
multi-level marketing.
c)
licensing.
d)
franchising.
14.
Jake wants to run his own business but is unsure that he has adequate business skills
a)
Private corporation
b)
Sole proprietorship
c)
Business-format franchise
d)
Product trade-name franchise
15.
Which of the following is a characteristic of a product trade-name franchise:
a)
It is not open to the public
b)
The franchisee can choose the name of the business.
c)
The franchisee has unlimited liability.
d)
It is owned by shareholders.
16.
Kai is the owner of a pizza shop associated with a national chain of pizza restaurants.
a)
host franchise.
b)
strategic alliance.
c)
master licensee
d)
piggyback franchise.
17.
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
a)
product licensing.
b)
product trade-name franchising.
c)
multi-level marketing.
d)
strategic partnering.
18.
Illegally run organizations that emphasize the collection of high fees from potential product
a)
pyramid schemes
b)
pressure-cooker tactics
c)
marketing rackets.
d)
deceptive advertising gimmicks.
19.
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
a)
product trade-name franchise
b)
sole proprietorship.
c)
licensing agreement
d)
joint venture.
20.
Which of the following statements is true regarding joint ventures:
a)
Joint venture arrangements are usually short-term relationships.
b)
Joint ventures are used only when it is necessary to raise a lot of capital.
c)
Large corporations are the only business structures that can benefit from joint ventures
d)
An independent attorney must always be consulted before signing a joint
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