Case Study: Starting a Business

Question 1

The most common business organizations in the United States are

Revolt · Accepted Answer

sole proprietorships.

Question 2

Which document determines the number of shares in a company?

Revolt · Accepted Answer

a corporate charter

Question 3

Franchising is typically done by

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corporations.

Question 4

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

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independent workers; tax preparer working his own business; freelance writers

Question 5

Cooperatives save members money by

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purchasing supplies and services as a group.

Question 6

feestaxesinsuranceinterest

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taxes

Question 7

A disadvantage of forming a partnership is that owners

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are fully responsible for their partners' losses.

Question 8

Which best describes the difference between sole proprietorships and partnerships?

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Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.

Question 9

Entrepreneurs who want to open a franchise

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buy the rights from the parent company and invest in a location approved by the parent company.

Question 10

Analyze the chart, which depicts a typical corporate structure.

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run the business by electing a board of directors, who then hire the company’s leaders.

Case Study: Starting a Business Answers

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