AnswersAL-EconomicsInflation and Stagflation (continued)

Business Structures Answers

0 verified answers1 views
1
Free Preview

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

A
lawyers working for a corporation
B
doctors in a partnership
C
independent workers
D
franchise restaurants in a partnership
E
tax preparer working his own business
F
freelance writers
2
Free Preview

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.
3

What role does a fast-food corporation play when it agrees to franchise its business? Select four answers.

A
supply training
B
license a trademark
C
select a location
D
pay associated fees
E
supply advertising
F
collect most profits
4

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.
5

Franchising is typically done by

A
cooperatives.
B
partnerships.
C
LLC
D
corporations.
6

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.
7

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.
8

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.
9

Analyze the chart, which depicts a typical corporate structure.

Question illustration
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.
10

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.

Did you find these answers helpful?

More from this Course

Quiz
10 verified answers

Money

Quiz
10 verified answers

Trade Barriers

Quiz
10 verified answers

Trade Barriers