Entrepreneurship

Question 1

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.

Question 2

The main advantage that corporations have is

Revolt · Accepted Answer

limiting liability for owners and stockholders.

Question 3

Franchising is typically done by

Revolt · Accepted Answer

corporations.

Question 4

The most common business organizations in the United States are

Revolt · Accepted Answer

sole proprietorships.

Question 5

Which can be considered disadvantages of sole proprietorships and partnerships?

Revolt · Accepted Answer

Sole proprietorships require one person to do many things, while partnerships require many people to weigh in on decisions.

Question 6

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 7

Which document determines the number of shares in a company?

Revolt · Accepted Answer

a corporate charter

Question 8

Which best describes the difference between preferred and common stocks?

Revolt · Accepted Answer

Common stock gives shareholders one vote per share owned, while shareholders of preferred stock do not have voting rights.

Question 9

What happens to earnings in a cooperative?

Revolt · Accepted Answer

They are shared with member owners.

Question 10

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

Revolt · Accepted Answer

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

Entrepreneurship Answers

More from this Course

TRY EDGENUITY HACKS