Business Structures — Quiz

Question 1

Franchising is typically done by

Revolt · Accepted Answer

corporations.

Question 2

Cooperatives save members money by

Revolt · Accepted Answer

purchasing supplies and services as a group.

Question 3

Which document determines the number of shares in a company?

Revolt · Accepted Answer

a corporate charter

Question 4

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 5

Franchises are attractive to business owners because

Revolt · Accepted Answer

they have a proven business model.

Question 6

How do corporations raise money and resources to expand?

Revolt · Accepted Answer

They agree to sell stocks.

Question 7

A disadvantage of forming a partnership is that owners

Revolt · Accepted Answer

are fully responsible for their partners' losses.

Question 8

The main advantage that corporations have is

Revolt · Accepted Answer

limiting liability for owners and stockholders.

Question 9

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 10

The main advantage that corporations have is

Revolt · Accepted Answer

limiting liability for owners and stockholders.

Business Structures — Quiz Answers