Business Structures Answers

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What happens to earnings in a cooperative?

T
They are used to pay middlemen for services.
T
They are shared with member owners.
T
They are used to buy more stock for members.
T
They are shared with customers through dividends.
3

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.
5

Which document determines the number of shares in a company?

A
a stock prospectus
B
an annual bill of rights
C
a corporate charter
D
an annual report
6

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.
7

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.
8

shareholderspartnersbankersboard members

A
shareholders
B
partners
C
bankers
D
board members
9

Entrepreneurs who want to open a franchise

b
buys the rights from the parent company and creates his or her own rules.
b
buy the rights from the parent company and invest in a location approved by the parent company.
i
invest in a location and create a business model for the franchise.
i
invest in a location and develop a trademark for the franchise.
10

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

l
lawyers working for a corporation
d
doctors in a partnership
i
independent workers
f
franchise restaurants in a partnership
t
tax preparer working his own business
f
freelance writers

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