Business Structures

Question 1

What role does a fast-food corporation play when it agrees to franchise its business? Select four answers.supply traininglicense a trademarkselect a locationpay associated feessupply advertisingcollect most profits

Revolt · Accepted Answer

supply training; select a location; supply advertising; collect most profits

Question 2

The main advantage that corporations have is

Revolt · Accepted Answer

limiting liability for owners and stockholders.

Question 3

shareholderspartnersbankersboard members

Revolt · Accepted Answer

shareholders

Question 4

Franchising is typically done by

Revolt · Accepted Answer

corporations.

Question 5

feestaxesinsuranceinterest

Revolt · Accepted Answer

taxes

Question 6

The most common business organizations in the United States are

Revolt · Accepted Answer

sole proprietorships.

Question 7

A disadvantage of forming a partnership is that owners

Revolt · Accepted Answer

are fully responsible for their partners' losses.

Question 8

What happens to earnings in a cooperative?

Revolt · Accepted Answer

They are shared with member owners.

Question 9

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 10

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.

Business Structures Answers

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