Business Structures

Question 1

Franchises are attractive to business owners because

Revolt · Accepted Answer

they have a proven business model.

Question 2

Which document determines the number of shares in a company?

Revolt · Accepted Answer

a corporate charter

Question 3

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 4

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 5

The most common business organizations in the United States are

Revolt · Accepted Answer

sole proprietorships.

Question 6

Cooperatives save members money by

Revolt · Accepted Answer

purchasing supplies and services as a group.

Question 7

Franchising is typically done by

Revolt · Accepted Answer

corporations.

Question 8

An entrepreneur who opens a franchise must

Revolt · Accepted Answer

assume debts.

Question 9

What happens to earnings in a cooperative?

Revolt · Accepted Answer

They are shared with member owners.

Question 10

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.

Business Structures Answers

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