Business Structures

Question 1

A disadvantage of forming a partnership is that owners

Revolt · Accepted Answer

are fully responsible for their partners' losses.

Question 2

What role does a fast-food corporation play when it agrees to franchise its business? Select four answers.supply traininglicense a trademarkselect a locationpay associated feessupply advertisingcollect most profits

Revolt · Accepted Answer

supply training; select a location; supply advertising; collect most profits

Question 3

Entrepreneurs who want to open a franchise

Revolt · Accepted Answer

buy the rights from the parent company and invest in a location approved by the parent company.

Question 4

How do corporations raise money and resources to expand? Select THREE answers.They request a bank loan.They raise franchise fees.They cash in dividends.They agree to sell stocks.They issue bonds.

Revolt · Accepted Answer

They request a bank loan.; They agree to sell stocks.; They issue bonds.

Question 5

Which document determines the number of shares in a company?

Revolt · Accepted Answer

a corporate charter

Question 6

What happens to earnings in a cooperative?

Revolt · Accepted Answer

They are shared with member owners.

Question 7

Analyze the chart, which depicts a typical corporate structure.

Revolt · Accepted Answer

run the business by electing a board of directors, who then hire the company’s leaders.

Question 8

Which are examples of sole proprietorships? Check all that apply.lawyers working for a corporationdoctors in a partnershipindependent workersfranchise restaurants in a partnershiptax preparer working his own businessfreelance writers

Revolt · Accepted Answer

independent workers; tax preparer working his own business; freelance writers

Question 9

shareholderspartnersbankersboard members

Revolt · Accepted Answer

shareholders

Question 10

An entrepreneur who opens a franchise must

Revolt · Accepted Answer

assume debts.

Business Structures Answers

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