Business And FinanceBusiness Structures example #35378
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Business Structures

Sabrina Edwards avatar Sabrina Edwards
25 July 2022
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15 test answers

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question
Which can be considered disadvantages of sole proprietorships and partnerships?
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Sole proprietorships require one person to do many things, while partnerships require many people to weigh in on decisions.
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An entrepreneur who opens a franchise must
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assume debts.
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Franchises are attractive to business owners because
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they have a proven business model.
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How do corporations raise money and resources to expand?
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They agree to sell stocks.
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Franchising is typically done by
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corporations.
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People who buy stock in a company are known as ...
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shareholders
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The most common business organizations in the United States are
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sole proprietorships.
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Which are examples of sole proprietorships? Check all that apply.
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independent workers tax preparers freelance writers
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A disadvantage of forming a partnership is that owners
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are fully responsible for their partners' losses.
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What role does a fast-food corporation play when it agrees to franchise its business? Check all that apply.
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The franchisor will supply training. The franchisor will select a location. The franchisor will supply advertising. The franchisor will collect most profits
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What happens to earnings in a cooperative?
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They are shared with member owners
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How do corporations raise money and resources to expand?
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They request a bank loan They agree to sell stock. They issue bonds
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Which document determines the number of shares a company can sell?
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corporate charter
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Which describes the process of how a business incorporates?
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The business must gain government permission and issue a stock sale, followed by a shareholder vote
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Entrepreneurs who want to open a francehise
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buy the rights from the parent company and invest in a location approved by the parent company