Unit 2 Business Basics- Entrepreneurship

Which of the following is NOT a way to own a business?

• Purchase an existing business

• Work as an employee for a business

• Have a family business passed down.

• Start your own business

What is one advantage of purchasing an existing business?

• High startup costs

• Established business and customer base

• Lack of brand recognition

• There may be problems with the business

Which term refers to the payment made by a franchisee to the franchisor to have the rights to open a franchise location?

• Initial franchise fees

• Royalty fees

• Advertising fees

• Startup costs

What are the three basic forms of business ownership?

• Sole Proprietorship, Partnership, Corporation

• Sole Proprietorship, Retail, Franchise

• Corporation, Subscription, Cooperative

• Partnership, Cooperative, Retail

Which form of business ownership is typically owned and operated by one individual?

• Partnership

• Corporation

• Sole Proprietorship

• Cooperative

What is a key advantage of a partnership?

• Limited liability

• Shared responsibility and resources

• Double taxation

• Complete control by one person

Which form of business ownership is characterized by limited liability and double taxation?

• Sole Proprietorship

• Partnership

• Corporation

• Cooperative

Which type of ownership is more difficult to start?

• Sole Proprietorship

• Partnership

• Corporation

What is a Limited Liability Company (LLC)?

• A company with unlimited liability

• A company that combines elements of partnerships and corporations

• A type of non-profit organization

• A government-owned entity

What is a business model?

• A plan for generating revenue or making money

• A type of financial statement

• A marketing strategy

• A legal document