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