AnswersCCPS EconomicsBusinessFree Enterprise 45.06100 ICBusiness Structures

Business Structures Answers

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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.
2
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A
fees
B
taxes
C
insurance
D
interest
3

Which can be considered disadvantages of sole proprietorships and partnerships?

P
Partnerships require many people to write a charter, while sole proprietorships require one person to write a charter.
S
Sole proprietorships require one person to know complicated tax laws, while partnerships require many people to know the rules.
P
Partnerships require one person to do many things, while sole proprietorships require many people to weigh in on decisions.
S
Sole proprietorships require one person to do many things, while partnerships require many people to weigh in on decisions.
4

Which are examples of sole proprietorships? Check all that apply.

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
5

The main advantage that corporations have is

l
limiting liability for owners and stockholders.
g
giving many owners a say in business decisions.
b
being inexpensive and easy to establish.
r
requiring fewer state and federal regulations.
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

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
8

The most common business organizations in the United States are

p
partnerships.
s
sole proprietorships.
c
corporations.
f
franchises.
9

A disadvantage of forming a partnership is that owners

c
can find it tougher to start and stop a business.
c
can find it more difficult to get a bank loan.
a
are only responsible for their own finances.
a
are fully responsible for their partners' losses.
10

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.

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