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WorksheetsBusiness Structures and Entrepreneurship Worksheet
Total questions: 50
Worksheet time: 2hrs 40mins
Which factor does the text say helps determine the best business path?
Seasonal demand
A person’s goals and risk tolerance
Population density
The size of the industry
What is a main advantage of starting a new business?
Full creative control
Guaranteed early profit
Built-in customers
Lower risk
What major challenge comes with starting from scratch?
Required royalty payments
Limited input on decisions
Building a customer base from nothing
Having too many employees
Why is buying an existing business less uncertain?
It already generates revenue.
It requires no startup cost.
It never has employee issues.
It has no past records.
What risks may come with buying a business?
No chance to make changes
Hidden debts or problems
Low brand recognition
Lack of financial documents
What does a franchise offer?
Ownership with no fees
Unlimited creativity
A proven business model
Complete independence
What reduces a franchisee’s profit?
Ongoing royalty payments
Free marketing
Chargebacks from suppliers
Bonus incentives
What is a major drawback of a sole proprietorship?
Required partners
Limited decision-making power
Unlimited personal liability
Double taxation
What is a benefit of a sole proprietorship?
Built-in customers
Guaranteed investor support
Simple tax filing
Low liability
Why do some entrepreneurs choose partnerships?
They want strict corporate rules.
They want to avoid pass-through taxes.
They want no chance of conflict.
They want to share responsibilities.
What is a common challenge in partnerships?
Disagreements between partners
No ability to find suppliers
No shared workload
No tax benefits
What protection does an LLC provide?
Insurance for suppliers
Free equipment
Guaranteed profits
Protection of owners’ personal assets
Who is best suited for an LLC?
Owners wanting corporate status
Owners wanting liability protection and flexibility
Owners avoiding paperwork
Owners needing guaranteed investors
How do corporations typically raise large amounts of money?
Charging membership fees
Collecting royalties
Selling franchises
Selling shares of stock
What is a drawback of forming a corporation?
No liability protection
Double taxation
No ability to raise money
No reporting requirements
Which business structure continues even if the owners change?
Sole proprietorship
Franchise
Corporation
Partnership
Who would benefit the most from starting a new business?
Someone who avoids risk
Someone who wants strict rules to follow
Someone who wants maximum creative control
Someone who wants immediate customers
Who benefits the most from buying an existing business?
Someone who prefers uncertainty
Someone who wants quicker cash flow
Someone who refuses to pay upfront costs
Someone who dislikes established systems
Who is franchising best suited for?
Someone who wants a proven system and support
Someone who avoids structure
Someone who avoids paying fees
Someone who wants full independence
A sole proprietorship is best suited for someone who:
Prefers shared decision-making
Has a simple idea and low startup funds
Wants liability protection
Plans to sell stock
Why do partnerships work well for some entrepreneurs?
They want complete control.
The owners trust each other and want to combine their strengths.
They prefer strict rules.
They want to avoid sharing tasks.
Which option provides liability protection without corporate complexity?
Franchise
Partnership
Sole proprietorship
LLC
Who should consider forming a corporation?
Someone planning major growth and investment
Someone wanting minimal reporting requirements
Someone wanting to avoid paperwork entirely
Someone wanting a single-owner business
In the example, what does the teen do to start a T-shirt business?
Form an LLC
Buy a franchise
Buy an existing shop
Start a new business
Why might someone buy an existing restaurant?
It guarantees creative freedom.
It provides immediate customers.
It requires minimal investment.
It promises no hidden issues.
What advantage does a coffee shop franchise provide?
No required training
A recognizable brand
Free supplies
Complete independence
Why do the two friends in the example form a partnership?
They need investor stock.
They want zero shared work.
They have complementary skills.
They want a franchise model.
Why does the family that is forming a bakery choose an LLC?
To protect personal assets
To avoid all paperwork
What does choosing a business path directly affect?
Product packaging
Weather conditions
Local population
Taxes, control, and risk
What is a major risk of starting a new business?
Having surplus customers
Building a reputation from scratch
Paying ongoing royalties
No access to records
What is a common issue with partnerships?
Required franchising fees
Mandatory corporate taxation
Personal liability
No chance of disagreement
Who should avoid franchising?
Someone who prefers lower risk
Someone who wants a proven model
Someone who wants training
Someone who dislikes strict rules
Who is most likely to choose a sole proprietorship?
Someone needing corporate protections
Someone wanting shared ownership
Someone with very limited money
Someone wanting stock investors
Who should avoid starting a business from scratch?
Someone who needs fast cash flow
Someone who enjoys creativity
Someone who wants low control
Someone who dislikes partnerships
What might happen if partners constantly argue?
The partnership will convert to a corporation.
Liability protection increases automatically.
The business may struggle.
All taxes are eliminated.
Who benefits the most from a franchise’s support system?
Someone wanting a lower-risk, guided approach
Someone wanting creative independence
Someone wanting no fees
Someone avoiding rules
Who should NOT choose a sole proprietorship?
Someone starting a small business alone
Someone wanting simple taxes
Someone wanting full control
Someone who wants to avoid personal liability
Who benefits the most from forming a corporation?
Someone seeking major investment funding
Someone wanting low reporting requirements
Someone preferring an informal structure
Someone wanting less paperwork
Who should avoid forming a corporation because of double taxation?
Someone wanting pass-through taxation
Someone seeking investor funding
Someone wanting strong liability protection
Someone wanting perpetual existence
Who would struggle in a franchise system?
Someone who values total independence
Someone who wants support
Someone who likes structure
Someone who prefers lower risk
Who might choose to buy an existing business instead of a franchise?
Someone wanting customers immediately without strict rules
Someone wanting brand recognition
Someone wanting required procedures
Someone wanting built-in training
Why form a partnership?
To combine skills and share work
To eliminate paperwork
To receive marketing support
To avoid all liability
Which type of business faces strict reporting requirements?
Sole proprietorship
LLC
Corporation
Partnership
Who should consider becoming a franchisee?
Someone who avoids structure
Someone who prefers total independence
Someone who wants brand recognition without building it
Someone who avoids initial fees
Who might buy an existing business instead of starting a new one?
Someone wanting a faster start and willing to pay more upfront
Someone avoiding all initial costs
Someone wanting a brand-new concept
Someone avoiding any change
Who would struggle the most in a partnership?
Someone who wants complete control
Someone who enjoys collaboration
Someone wanting a shared workload
Someone avoiding risk
Who is most likely to succeed as a franchisee?
Someone who wants strong training and support
Someone who dislikes structure
Someone who wants to create their own brand
Someone who wants full independence
Who should avoid buying an existing business?
Someone who fears hidden financial issues
Someone who wants early revenue
Someone who likes established systems
Someone who wants immediate customers
Which path involves the most early uncertainty?
Forming a corporation
Buying an existing business
Franchising
Starting a new business
Who would benefit the most from a sole proprietorship?
Someone needing liability protection
Someone planning a large-scale investment
Someone preferring shared ownership
Someone wanting a simple, low-cost start with full control
