Business Structures and Concepts

What is the purpose of a Benefit Corporation (B Corp)?

• To maximize shareholder value

• To explicitly include public benefit in their decisions

• To sell unlimited shares to the general public

• To bring together multiple companies to form one larger company

What is a Business Format Franchise?

• A franchise that allows the franchisee to use the franchisor's brand name

• A franchise that gives the franchisee access to the franchisor's proprietary knowledge base

• A franchise that allows the franchisee to operate and sell the franchisor's product or service

• All of the above

What is a C Corporation (C Corp)?

• A corporation that can sell unlimited shares to the general public

• A corporation that is heavily regulated by the government

• A corporation that reports its financial information to the public

• All of the above

What is consolidation?

• Bringing together multiple companies to form one larger company

• A business structure where all partners have decision-making power

• A legal responsibility for business actions, debts, and obligations

• A business structure that combines the operational characteristics of a sole proprietorship or partnership

What is a Corporation?

• A legal entity that is separate from its owners and controlled by a board of directors

• A business where all partners have decision-making and management power

• A business structure where one or more partners are not active

• A business where individuals make commissions from sales made by their network of recruited distributors

What is expansion in business?

• Increasing marketing efforts

• Hiring more sales employees

• Adding locations

• All of the above

What is a Franchise?

• A business where a retail franchise operates inside of another, larger facility

• A business where individuals make commissions from sales made by their network of recruited distributors

• A business where a franchisee pays a fee to a franchisor to use the franchisor's brand name

• A business where a licensee pays a royalty to a licensor to use certain intangible property

What is a General Partnership?

• A business where all partners have decision-making and management power

• A business where one or more partners are not active

• A business where individuals make commissions from sales made by their network of recruited distributors

• A business where all partners have unlimited liability

What is a Joint Venture?

• When two or more companies cooperate by pooling together resources for a specific task

• A business where individuals make commissions from sales made by their network of recruited distributors

• A business where all partners have decision-making and management power

• A business where one or more partners are not active

What is Liability in business?

• The legal responsibility of an individual for business actions, debts, and obligations

• The liability that extends beyond an individual's financial investment into a company

• The liability that restricts an individual's potential loss to the total amount of their investment in a company

• The liability that extends beyond an individual's financial investment into a company