Business Structures

Question 1

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 2

Which document determines the number of shares in a company?

Revolt · Accepted Answer

a corporate charter

Question 3

An entrepreneur who opens a franchise must

Revolt · Accepted Answer

assume debts.

Question 4

Franchising is typically done by

Revolt · Accepted Answer

corporations.

Question 5

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 6

The main advantage that corporations have is

Revolt · Accepted Answer

limiting liability for owners and stockholders.

Question 7

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 8

What happens to earnings in a cooperative?

Revolt · Accepted Answer

They are shared with member owners.

Question 9

feestaxesinsuranceinterest

Revolt · Accepted Answer

taxes

Question 10

The most common business organizations in the United States are

Revolt · Accepted Answer

sole proprietorships.

Business Structures Answers