Business Ownerships

The purpose of a business plan is to?

• describe how a business will operate

• guide development of the business

• obtain a loan

• All of the Answers

Why do people start their own business?

• To be their own boss

• Flexibility

• Achieving their dreams

• All of the above

What do we call a person who starts a business?

• Enterprise

• Entreposuer

• Entrepreneur

• Extraposer

A characteristic of a sole proprietorship is that the owner:

• Has access to unlimited funds

• Receives all the profit

• Transfers all the risk

• Delegates all functions

To form my business, I used all of my savings and borrowed from the bank, and I'm personally liable for all of the debts. This statement is an example of which of the following forms of business ownership:

• Partnership

• Sole proprietorship

• Corporation

• Cooperative

John, Robert, and Charles were college friends who wanted to start a business. John has creative ability, Robert's expertise is selling, and Charles' expertise is management. However, each has limited capital. The ideal business ownership for these young men is a

• Merger

• Partnership

• Franchise

• Corporation

Which of the following is NOT a type of business ownership?

• partnership

• sole proprietorship

• entrepreneurship

• company

This type of business is owned by two or more people.

• Sole Proprietorship

• Partnership

• Corporation

• Franchise

This type of business is owned by many people called stockholders.

• Sole Proprietorship

• Partnership

• Company

• Franchise

 How are sole proprietorships and partnerships alike?

• Contracts are needed to start the businesses.

• Owners have limited legal liability.

• Owners have complete control of the business.

• The businesses are owned by one person.