Types of Business Ownerships

Brea, Robert and Lincoln are university friends who want to start a business. Brea has creative skills, Robert's experience is in sales, and Lincoln's experience is in management. However, each one has limited capital. Their ideal type of business ownership is a

• merger

• partnership

• franchise

• corporation

If all individuals who own a business share unlimited liability for the business's losses, these individuals are part of a

• private corporation

• general partnership

• "S" corporation

• "C" corporation

Scott company decided to sell shares to raise capital. Under what form of business ownership does the company operate?

• corporation

• cooperative

• partnership

• sole proprietorship

What type of corporation can be owned by only a few people and does not offer its shares for sale to the general public?

• limited

• franchise

• "C"

• private

A type of corporation that was developed to help small businesses with fewer than 100 people by taxing them as individuals in a partnership is a (n) corporation.

• "S"

• "C"

• private

• limited

What type of corporation sells millions of shares and must provide complete information about its earnings, assets, and debts?

• "C"

• private

• "S"

• limited

The American Red Cross is an example of a corporation.

• hybrid

• non-profit

• "S"

• "C"

Wendy's sells the right to operate its restaurants to individuals who meet the company's criteria. The agreement between Wendy's and these individuals is an example of

• a partnership agreement

• multilevel marketing

• licensing

• franchise

"To start my business, I used all my savings and borrowed from the bank, and I am personally responsible for all the debts."

• Partnership

• Sole proprietor

• Corporation

• Cooperative

Lois and Harper plan to open a flower shop. Lois cannot dedicate full time to the daily operations of the shop, but wants to provide financial support. What type of partnership is most likely to appeal to Lois?

• Private

• Non-profit

• General

• Limited