Business Structures

Question 1

What are the primary advantages to choosing a sole proprietorship? Select all that apply.It can be inexpensive and easy to set up.Decisions are in the hands of many people.The owner is not liable for the company’s debts.Many types of business taxes are not required.Owners can keep profits for themselves.

Revolt · Accepted Answer

A: It can be inexpensive and easy to set up.; D: Many types of business taxes are not required.; E: Owners can keep profits for themselves.

Question 2

What are the primary advantages of forming a corporation? Select all that apply.Corporations are inexpensive and easy to set up.Corporations are not required to register with state governments and the federal government.It is easier to raise large amounts of capital.Owners are not personally liable for corporations’ debts. Corporations do not have to pay business taxes.

Revolt · Accepted Answer

C: It is easier to raise large amounts of capital.; D: Owners are not personally liable for corporations’ debts.

Question 3

What are the primary advantages to owning a franchise? Select all that apply.The franchisor provides brand-name recognition and marketing plans.Franchises are inexpensive to start up and run.The franchisor assumes all the risk in the business.The franchisor provides training, management assistance, supplies, and a product.Franchisees keep all their profits for themselves.

Revolt · Accepted Answer

A: The franchisor provides brand-name recognition and marketing plans.; D: The franchisor provides training, management assistance, supplies, and a product.

Business Structures Answers

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