Business Structures Answers
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What happens to earnings in a cooperative?
A
They are used to pay middlemen for services.B
They are shared with member owners.C
They are used to buy more stock for members.D
They are shared with customers through dividends.22
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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.23
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.24
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.25
How do corporations raise money and resources to expand? Select THREE answers.
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.26
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.27
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.28
Analyze the chart, which depicts a typical corporate structure.
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.Did you find these answers helpful?
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