business structure
Which business structure allows for single taxation?
A. Corporation
B. 501(c3) non-profit organizations
C. cooperatives
D. Partnerships
D. Partnerships
What quality is commonly found within entrepreneurs?
A. Conformity
B. Risk-taking mentality
C. Fixed mindset
D. Mundaneness
B. Risk taking mentality
Franchises do not defy the great odds of failure shortly after startup.
A. True
B. False
B. False
Jose recently left his job as a prosecutor to pursue his dream of creating his own catastrophic injury law firm. From his last job, he has gained a network of attorneys and identified a few that would also be interested in starting up a law firm. He seeks peace of mind from lawsuits affecting his own personal assets. What business structure would be ideal?
Cooperative
Partnership
Corporation
Franchise
Cooperative
A. 95%
B. 80%
C. 90%
D. 75%
C. 90%
What would a true entrepreneur do in regards to business expansion?
A. Scaling
B. Remaining local
C. Sign a contractual agreement to use a proven method/brand
D. Remain in one market
A. scaling
Why are franchises so likely to succeed?
A. They are run by individuals who are willing to take big risks.
B. They utilize proven methods.
C. They appeal to the needs of the populations they serve.
D. They serve as hubs for innovation in their service areas.
B. They utilize proven methods.
Alessandro recently quit his job as a chef in a five star restaurant in Times Square. He decided it was the right time to become boss and take steps to earn plenty more in profits. However, he is in search of a structure that is almost guaranteed to succeed.
Corporation
Sole proprietorship
Partnership
Franchise
1. Franchise
Most businesses start out with unproven methods and will attempt to prove them as they continue operation. Many will fail. Which business structure, however, allows you to utilize proven methods?
A. Corporations
B. Franchises
C. 501(c3) non-profit organizations
D. Sole proprietorships
B. Franchises
What is the goal of an entrepreneur?
A. Scale a business
B. Generate rapid profits
C. Generate a stable income
D. Keeping things simple
B. Generate rapid profits
What percentage of all franchises fail?
A. 5%
B. 7%
C. 10%
D. 15%
C. 10%
Andriy and his small group of friends are interested in starting an auto repair shop. They want to provide top of the line services, build a supportive community, and market their own line of products within these stores and an online store. They seek to expand across the United States and dominate their industry on the national level. What structure should be implemented?
Corporation
Cooperative
Franchise
Partnership
Corporation
Which business structure generates only 5% of all revenue in the United States?
A. Corporations
B. 501(c3) non-profit organizations
C. cooperatives
D. Sole proprietorships
D. Sole proprietorships
What percentage of remaining businesses (after 5 years) are profitable?
A. ~8%
B. ~1%
C. <1%
D. ~2%
D. ~2%
Are franchise owners typically considered entrepreneurs?
A. No, as the structure they decided on utilizes the proven methods and likeness of a successful brand and does not necessarily allow for innovation.
B. Yes, as they utilize the brand and likeliness of another company to develop their own innovative methods and spread them throughout similar franchises.
C. No, as the structure creates a foolproof method for success in every single area the company serves and it is impossible to fail.
D. Yes, because each operator is known to innovate in their methods within their own community and franchisors allow for franchisees to run their business in whatever manner they so choose to.
A. No, as the structure they decided on utilizes the proven methods and likeness of a successful brand and does not necessarily allow for innovation.
Valentino wants to start a food truck business with his wife. They want to provide quality Italian food to the residents of their hometown of Daytona Beach. They want to make a name for themselves in the area, however, they are not interested in going through the hassle of much paperwork. What business structure should they implement.
Partnership
Corporation
Cooperative
Sole proprietorship
Sole proprietorship
Which structure makes up 20% of all American businesses?
A. Partnerships/LLPs
B. Franchises
C. Corporations
D. 501(c3) non-profit organizations
C. Corporations
If an entrepreneur started a business that risked putting him at a debt of $4,000,000, but had the ability to eventually generate profit later down the line, should it survive, would he do it?
A. Yes, he would as his mindset allows for high risk tolerance, despite the great potential for financial turmoil.
B. No, as the risk would greatly outweigh the potential reward.
C. Yes, as he seeks to generate a profit no matter what.
D. No, as his mindset restricts his ability to tolerate great risks, even if they have the potential to generate massive profits down the line.
A. Yes, he would as his mindset allows for high risk tolerance, despite the great potential for financial turmoil.
A. Yes, the franchisor reserves the right to remove the operator from the franchise if they fail to uphold their contractual duties.
B. No, they cannot be sacked and they maintain unlimited control over the likeliness and operations of their franchise.
C. Yes, the franchisor can remove and replace franchisees at their own discretion.
D. No, rather, the contractual agreement could be terminated should they fail to uphold their contractual obligations.
D. No, rather, the contractual agreement could be terminated should they fail to uphold their contractual obligations.
Gianluca recently left his position as a top executive of a popular grocery store chain in search bettering his community. He has a bachelor of science degree in medical biology and is interested in political lobbying for stricter drug laws in pertinence to the youth of this country, and wants to help reduce drug use and overdose in his hometown of Portland, Oregon. He wants to fund the construction of halfway houses and run off donations and grants. However, he is interested in turning massive profits. What structure should he implement?
Sole proprietorship
Non-profit
Corporation
Partnership
2. Non-profit