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