Why is sole proprietorship the most common form of business ownership?

1.   ?    Legal assistance is needed for start up in this form
2.   ?    Limited liability of sole proprietorships is a desirable benefit.
3.   ?    Money can be raised easily by issuing shares of stock
4.   ?    The government assumes little control over sole proprietorships

Which type of business can own assets and borrow money without directly involving the people who own it, and therefore, is more closely regulated by the government than other business organizations?

1.   ?    Corporation
2.   ?    Family-owned business
3.   ?    General partnership
4.   ?    Sole proprietorship

A local manufacturer has agreed to produce Gale's new product. This will relieve Gale from having to set up a manufacturing plant. This type of partnership is a/an:

1.   ?    General partnership
2.   ?    Joint venture
3.   ?    Limited partnership
4.   ?    Strategic alliance

Which is a major disadvantage to buying a franchise?

1.   ?    Equipment and supplies are less expensive
2.   ?    No management or technical assistance is provided
3.   ?    The performance of other franchises impact on the franchisee.
4.   ?    There is no guarantee of product consistency

Which is a major advantage to buying a franchise?

1.   ?    Freedom in making business decisions
2.   ?    Guaranteed profit on all goods sold
3.   ?    High cost of supplies and equipment
4.   ?    Management training and technical assistance provided

The Cooper Company decided to sell stock to raise capital. Under which form of business organization does the company operate?

1.   ?    Corporation
2.   ?    Franchise
3.   ?    Partnership
4.   ?    Sole Proprietorship

Which form of incorporation would a church or charity use?

1.   ?    C-corporation
2.   ?    Limited Liability Company
3.   ?    Nonprofit corporation
4.   ?    Subchapter S corporation

Under which form of business ownership do owners have limited liability?

1.   ?    Corporation
2.   ?    General partnership
3.   ?    Sole proprietorship
4.   ?    Strategic alliance

Law firms and medical firms generally choose which form of incorporation?

1.   ?    C-corporation
2.   ?    Limited Liability Company
3.   ?    Nonprofit corporation
4.   ?    Subchapter S corporation

Which is a major disadvantage of a corporation?

1.   ?    Difficult to leave the business
2.   ?    Difficult to raise capital
3.   ?    Double taxation
4.   ?    Unlimited liability