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Unit 0-1: Entrepreneurship & Forms of Ownership Flashcards | StudBud
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Unit 0-1: Entrepreneurship & Forms of Ownership
Unit 0-1: Entrepreneurship & Forms of Ownership
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1
What does unlimited liabilty mean?
Owner's can lose only what they put in
Owner's can lose everything
2
McDonalds (currently) is an example of?
Franchise
Sole Proprietorship
Limited Partnership
Partnership
3
Which form of business brings in the greatest % of total revenue in the U.S.?
Sole Proprietorship
Firm
Partnership
Corporation
4
Which of the following is not an advantage of a franchise?
Advice & Assistance
Recognized Name
National Advertising
Lack of Freedom
5
An entrepreneur is someone who risks _________ in an attempt to successfully start a business.
Time
Money
Effort
All of the Above
6
This type of business is owned by one person.
Limited Partnership
Sole Proprietorship
Corporation
Partnership
7
One advantage to a corporation form of ownership is...
Access to Capital
Easy to Start/End
Double Taxation
Low Regulations
8
Someone might start a sole proprietorship because...
Can easily raise capital
Attracts employees
Reduce risk
They receive all the profits
9
In a corporation, people who invested in a company by purchasing stock are called?
Shareholders
Partners
Board of Directors
Franchisees
10
What is the maximum number of shareholders an S-Corporation can have?
10
75
1
100
11
If you want to be your own boss, you should open this form of ownership...
Corporation
Partnership
Sole Proprietorship
Franchise
12
Successful entrepreneurs are NOT...
Creative
Passionate
Hesitant
Goal-oriented
13
What is the easiest and most common form of business to create & end?
Franchise
Sole Proprietorship
Partnership
Corporation
14
To protect against disagreements in a partnership, partners should spell out all terms...
In Their Heads
They Should Not Do It
Vocally
In Writing
15
Which of the following is an advantage to being an entrepreneur?
Longevity
Independence
Long Hours
Stress
16
All partnerships split profits 50/50?
True
False
17
What does limited liability mean?
Owner's can only lose what they put in
Owner's can lose everything
18
What is a disadvantage for a sole proprietorship?
Royalty Fee
Owners Disagree
Limited Capital
Decision Making
19
Coca-Cola is an example of?
Corporation
Partnership
Sole Proprietorship
Firm
20
What are the benefits to an S-Corporation?
Difficult to convert
Can only have 150 shareholders
Personal assets are exposed
Only taxed at pesonal income level
21
What is an advatage to an LLC?
Limited Liability
There are no benefits
Double Taxation
Unlimited Liability
22
In a limited partnership the limited partner...
Actively manages the business
Only risks their investment
Does the day-to-day operations
All of the Above
23
What is the most common form of ownership in the U.S.?
Sole Proprietorship
Franchise
Corporation
Partnership
24
Which of the following is a disadvantage to a corporation?
Limited Life
Limited Liability
Unlimited Liability
Double Taxation
25
A corporation's top governing body is called?
Board of Directors
Board of Voters
Board of Sharks
Board of Owners
26
Taxed at a company level and again at a personal level (double taxation).
Sole Proprietorship
Franchise
S-Corporation
Corporation
27
An advantage to franchising is?
Must follow the rules of the franchise compant
National advertising
Splitting profits with franchisor
Must follow protocol on what to sell
28
The percent (%) of sales the franchisee gives the franchisor?
Advertising Fee
Taxes
Franchise Fee
Royalty Fee
29
Forming a LLC is a way for owners to protect their?
Taxes
Personal Assets
Income
None of These
30
Which of the following is NOT a personal characteristic of an entrepreneur?
Persistent
Risk-taker
Creative
Hands-Off
31
What is an advantage to a partnership?
Split the profits
Lack synergy
Combined skills
Management disagreements
32
How many people need to be involved in order to form a partnership?
5-7
2 or more
3-5
1
33
An arrangement where a business sells the rights (licensing) to operate in the company's name.
Merger
Partnership
Franchise
Acquisition
34
There are many forms of ownership to choose from, which is not an option everyone can do?
Start a business from scratch
Enter into a family company
Buying a business for sale
Buy a franchise
