Business Decisions

A business that is owned and operated by one person is called a:

• cooperative

• sole proprietorship

• partnership

• corporation

A partnership is a business that is:

• owned and operated by one person

• owned by shareholders

• owned and operated by two or more people

• created to hold property or assets for the benefit of another person or a group of people

A sole proprietorship is best suited to people who:

• like to work with other people

• like to work by themselves

• wish to preserve their family assets

• want to buy into a franchise

The advantages of a company as a form of ownership include:

• limited liability and the potential to attract more finance

• low costs and unlimited liability

• shared workload and unlimited liability

• reduced costs and combined expert knowledge

An individual or organisation that grants the right to another individual or organisation to use a business name and to produce or distribute a product or services is called a:

• franchisee

• corporation

• franchisor

• competitor

A corporation is a business owned by shareholders

• true

• false

A business that is owned and operated by the group of people that it serves is called a cooperative

• true

• false

Shared workload is an advantage of a partnership

• true

• false

UNLIMITED LIABILITY is where owners cannot lose more than their investment in the event of the failure of the business

• true

• false

A FRANCHISE occurs when a business sells the rights to distribute its products under its name to other individuals or businesses

• true

• false