AnswersOC27 Economics-2102310-Sem-MeadowsBusiness Structures

Business Structures Answers

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1
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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
2
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feestaxesinsuranceinterest

A
fees
B
taxes
C
insurance
D
interest
3

An entrepreneur who opens a franchise must

A
assume debts.
B
keep profits.
C
offer training.
D
select sites.
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.

T
They request a bank loan.
T
They raise franchise fees.
T
They cash in dividends.
T
They agree to sell stocks.
T
They issue bonds.
5

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

A
supply training
B
license a trademark
C
select a location
D
pay associated fees
E
supply advertising
F
collect most profits
6

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.
7

Which best describes the difference between sole proprietorships and partnerships?

A
Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.
B
Sole proprietors share responsibilities, while partners are responsible for only a portion of the business.
C
Sole proprietors split profits and share liabilities, while partners keep all profits and have unlimited liability.
D
Sole proprietors pay taxes only on business profits, while partners do not have to pay taxes on profits.
8

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.
9

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.
10

Franchising is typically done by

A
cooperatives.
B
partnerships.
C
LLC
D
corporations.

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