Understanding Business Types and Concepts

Which type of business is owned and operated by one individual?

• Corporation

• Sole Proprietorship

• Partnership

• Franchise

What is the main purpose of a business?

• To entertain people

• To make a profit by satisfying needs and wants

• To create laws

• To provide free services

Which of the following is an example of a good?

• Haircut

• Car

• Insurance

• Teaching

A business that is legally separate from its owners is called a:

• Partnership

• Corporation

• Sole Proprietorship

• Franchise

Which term describes something people desire but do not need to survive?

• Goods

• Needs

• Wants

• Services

A business owned by two or more people who share its risks and rewards is a:

• Franchise

• Partnership

• Corporation

• Sole Proprietorship

Which of the following best describes a franchise?

• A business owned by shareholders

• A business owned by one person

• A business that sells the rights to use its name and sell its products

• A business owned by the government

Which of the following is NOT a characteristic of a sole proprietorship?

• Owned by one person

• Easy to start

• Limited liability

• Owner keeps all profits

Which of the following is an example of a want?

• Water

• Shelter

• Designer shoes

• Food

Which type of business structure allows owners to share profits and losses?

• Corporation

• Partnership

• Franchise

• Sole Proprietorship