How is a corporation different from a sole proprietorship and a partnership?

Corporations provide limited owner liability.

How is a corporation different from a sole proprietorship?

Corporations can sell stock to raise money for the business.

What is an advantage of a franchise over a sole proprietorship?

Parent company provides training and support to franchisee.

studbud

EBE Section 1.3

10 termsStudBud Administration786 plays

Exploring Business & Entrepreneurship

Flashcards10 cardsFPractice quizPHost liveL

Questions 10

Answers

1
How are a franchise and a sole proprietorship alike?
Owner keeps all profits
Can sell stock to raise money
Easy to start the business
Require a contract to start
2
How is a corporation different from a sole proprietorship and a partnership?
Corporations do not require a charter
Corporations provide lower owner taxes.
Corporations are easier to start.
Corporations provide limited owner liability.
3
This business type has the BIGGEST DISADVANTAGE when it comes to paying taxes?
Corporation
Sole Proprietorship
Franchise
Partnership
4
When comparing the four main business types, which has the most risk and rewards for a person?
Sole Proprietorship
Franchise
Corporation
Partnership
5
Which of the following is NOT a non-profit?
United Way
Salvation Army
Meals on Wheels
Wells Fargo
6
Protects owners the MOST from personal financial liability due to being sued by a customer?
Sole Proprietorship
Partnership
Franchise
Corporation
7
Which business type allows the owner to start selling products most quickly?
Corporation
Sole proprietorship
Franchise
Partnership
8
How is a corporation different from a sole proprietorship?
Sole proprietorships have limited liability for the owners
Corporations are owned by only one person.
Sole proprietorships require a legal charter to start.
Corporations can sell stock to raise money for the business.
9
Joe and Bob's Landscaping will be considered what type of business?
Franchise
Partnership
Sole Proprietorship
Corporation
10
What is an advantage of a franchise over a sole proprietorship?
Franchisees do not have to work in the business.
Parent company provides training and support to franchisee.
Franchisees can sell stock to start up the business.
Parent company pay all of the franchisee's start up costs.

EBE Section 1.3 Flashcards | StudBud