AnswersRAIL NCAA OC Economics 2027Business Structures

3.9 Business Structures Answers

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21
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An entrepreneur who opens a franchise must

A
assume debts.
B
keep profits.
C
offer training.
D
select sites.
22
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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.

A
They request a bank loan.
B
They raise franchise fees.
C
They cash in dividends.
D
They agree to sell stocks.
E
They issue bonds.
23

Which can be considered disadvantages of sole proprietorships and partnerships?

A
Partnerships require many people to write a charter, while sole proprietorships require one person to write a charter.
B
Sole proprietorships require one person to know complicated tax laws, while partnerships require many people to know the rules.
C
Partnerships require one person to do many things, while sole proprietorships require many people to weigh in on decisions.
D
Sole proprietorships require one person to do many things, while partnerships require many people to weigh in on decisions.
24

Franchises are attractive to business owners because

A
they have a proven business model.
B
they are typically inexpensive to buy.
C
they get to keep all profits.
D
they come with very little risk.
25

Analyze the chart, which depicts a typical corporate structure.

Question illustration
A
run the business by electing a board of directors, who then hire the company’s leaders.
B
run the business by electing a board of directors and hiring a president and other leaders.
C
make business decisions on the advice of a board of directors, a president, and other leaders.
D
make business decisions on the advice of a board of directors, who follow the expertise of leaders.
26

Which can be considered disadvantages of sole proprietorships and partnerships?

A
Partnerships require many people to write a charter, while sole proprietorships require one person to write a charter.
B
Sole proprietorships require one person to know complicated tax laws, while partnerships require many people to know the rules.
C
Partnerships require one person to do many things, while sole proprietorships require many people to weigh in on decisions.
D
Sole proprietorships require one person to do many things, while partnerships require many people to weigh in on decisions.
27

The main advantage that corporations have is

A
limiting liability for owners and stockholders.
B
giving many owners a say in business decisions.
C
being inexpensive and easy to establish.
D
requiring fewer state and federal regulations.
28

Franchises are attractive to business owners because

t
they have a proven business model.
t
they are typically inexpensive to buy.
t
they get to keep all profits.
t
they come with very little risk.
29

Cooperatives save members money by

A
purchasing supplies and services as a group.
B
securing financing from banks as a group.
C
charging more to sell their products as a group.
D
sharing all profits democratically as a group.
30

An entrepreneur who opens a franchise must

A
assume debts.
B
keep profits.
C
offer training.
D
select sites.
31

A disadvantage of forming a partnership is that owners

A
can find it tougher to start and stop a business.
B
can find it more difficult to get a bank loan.
C
are only responsible for their own finances.
D
are fully responsible for their partners' losses.
32

[BLANK]

A
shareholders
B
partners
C
bankers
D
board members

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