Entre Chp 5

What is the most common form of business ownership?

• Sole Proprietorship

• Partnership

• Corporation

• Limited Liability Company

Which type of business ownership offers limited liability to its owners?

• Sole Proprietorship

• Partnership

• Corporation

• Limited Liability Company

What is the main advantage of starting a new business?

• Control

• Brand Recognition

• Limited Liability

• Infrastructure

What is a disadvantage of buying an existing business?

• Limited Capital

• Unestablished Customer Base

• Lack of Infrastructure

• Higher Start-up Costs

Which type of business ownership involves selling the company's rights to their name?

• Sole Proprietorship

• Partnership

• Corporation

• Franchise

What is an advantage of purchasing a franchise?

• Full Control over Business Decisions

• Lower Start-up Costs

• Ability to Develop and Employ Own Systems

• Operational Strategies Already in Place

Which type of business ownership has the least amount of government regulations?

• Sole Proprietorship

• Partnership

• Corporation

• Limited Liability Company

What is a disadvantage of a corporation?

• Limited Liability

• Lower Start-up Costs

• Double Taxation

• Fewer Decision Makers

What is a characteristic of a limited liability company (LLC)?

• Unlimited Liability

• Pass-through Taxation

• Strict Government Regulations

• Limited Life

What is a key advantage of a cooperative?

• Limited Liability

• Member-driven Focus

• Ability to Raise Funds

• Separate Legal Existence