Chapter 2: Check for Understanding

The four types of business models include: Direct Sales, Subscription, Freemium, and _________

Which business model is described?

Owner of the company grants another owner permission to use the company name

• Direct Sales

• Franchise

• Freemium

• Subscription

Which business model is described?

Customers pay an up-front price for a membership or renewal of a product

• Direct Sales

• Franchise

• Freemium

• Subscription

Which business model is described?

Employees of a business sell a product directly to a consumer

• Direct Sales

• Franchise

• Freemium

• Subscription

Which business model is described?

Company provides goods and services for free but later charges for extra features

• Direct Sales

• Franchise

• Freemium

• Subscription

The two types of businesses are for-______ and non-______ (one word answer).

Which type of business is described?

A company or organization that generates profit for the owner(s)

• For-profit business

• Non-profit business

Which type of business is described?

A company or organization that makes a profit to benefit a public interest or charity

• For-profit

• Non-profit

The four types of business ownerships include: Sole Proprietorship, Partnership, LLC, and ___________

What form of ownership is described?

A business owned by 2 or more individuals who share management and profits.

• Sole Proprietorship

• Partnership

• Corporation

• LLC