Ownership 1
Which of the following are NOT disadvantages of sole proprietorship?:
unlimited liability. heavy workload and responsibilities, lack of permanence, double taxation of earnings
double taxation of earnings
LLCs are taxed like partnerships and each member's income is accounted for with his or her personal income tax. Is this true or false?
False
In the United States, _________ are the dominant form of business ownership in terms of net income.
corporations
The ____________ is the business entity in a franchise relationship that allows others to operate a business using resources it supplies in exchange for money and other considerations.
franchisor
_______________________________
help small businesses develop their business plan and apply for loans.
Small Business Development Centers
Mike's Motorcycles, Inc., has operated for the last 20 years as a partnership. Recently, the partners agreed to change the structure of the business and decided to incorporate in Delaware. John Littleton, a partner, now becomes a
shareholder
An advantage or disadvantage of a general partnership is that it is able to take advantage of complementary skills and shared workload
advantage
A(n) _____________ occurs when one firm buys another firm.
acquisition
To reduce the risk of vulnerability to downturns in single markets, corporations would consider a _________ merger.
Conglomerate
A(n) ___________ is a formal document that describes a business concept and outlines the core business objectives while detailing the strategies and timelines for achieving those objectives.
business plan
A __________________firm is most likely to be interested in investing in a small new company with the potential for rapid growth .
venture capitalist
Bernie and Susan studied accounting in college and now want to work together as co-owners of a small accounting firm. Which form of ownership is best for Bernie and Susan?
partnership
Sole proprietorships make up over _____ percent of all businesses.
70
A drawback of buying a _____________ is
if something goes wrong with the national brand, then so does your company.
franchise
___________ are small segments within a market that can offer profit potential to entrepreneurs who know how to serve them.
Market Niches
The __________ is a relatively new and increasingly popular form of business ownership that is like a corporation in some ways and like a partnership in others.
limited liability company
From the standpoint of an owner, which of the following is a major advantage of the sole proprietorship?
ability to pool financial resources, ability to capitalize on complementary skills, retention of control, permanence of the business
retention of control
One reason many small businesses fail is the founder's inability to
manage money
Emily has a great deal of faith in her business ideas, even when others express doubts, so she is a/an
Entrepreneur
___________ are wealthy individuals who invest in new and growing firms
Angel investors
Individuals who make contributions to ________ will receive a tax-deduction, making it easier for these organizations to raise funds from donations.
nonprofit organization
To increase production capacity and provide consumers with market stability, Exxon and Mobil created Exxon/Mobil. This would be an example of a ____________ merger
horizontal
Basil spent his youth working in restaurants and now he wants to open his own restaurant. Basil needs more money than he can come up with his own, so he plans to ask his brothers to put up some money in exchange for a share of ownership. What type of ownership is this?
corporation
People with a(n) ___________ have a strong sense of personal responsibility for what happens in their lives.
Internal locus of control
Research suggests that many entrepreneurs fund their new business with
personal funds