3.9 Business Structures

Question 1

The most common business organizations in the United States are

Revolt · Accepted Answer

sole proprietorships.

Question 2

The main advantage that corporations have is

Revolt · Accepted Answer

limiting liability for owners and stockholders.

Question 3

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 4

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 5

Which best describes the difference between sole proprietorships and partnerships?

Revolt · Accepted Answer

Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.

Question 6

Which document determines the number of shares in a company?

Revolt · Accepted Answer

a corporate charter

Question 7

Which best describes the difference between preferred and common stocks?

Revolt · Accepted Answer

Common stock gives shareholders one vote per share owned, while shareholders of preferred stock do not have voting rights.

Question 8

feestaxesinsuranceinterest

Revolt · Accepted Answer

taxes

Question 9

What happens to earnings in a cooperative?

Revolt · Accepted Answer

They are shared with member owners.

Question 10

shareholderspartnersbankersboard members

Revolt · Accepted Answer

shareholders

3.9 Business Structures Answers

More from this Course

TRY EDGENUITY HACKS