Types of Businesses
What type of business provides intangible products?
Service Business
What is a sole proprietorship?
A business owned by one person with full control and unlimited personal liability.
What is a franchise?
A business that uses another company's business model and brand to operate, usually paying franchise fees.
Which type of business buys products at wholesale price and sells at retail price?
Merchandising Business
What is a partnership?
A business owned by two or more individuals who share control and profits.
What is a nonprofit organization?
An organization established for charitable, educational, or cultural purposes, typically tax-exempt.
What type of business transforms raw materials into finished products?
Manufacturing Business
What is a corporation?
A business owned by shareholders and treated as a separate legal entity with limited liability for owners.
What defines a cooperative?
A business owned and operated by its members, where profits and benefits are shared equally.
What is a key characteristic of a hybrid business?
Combines elements of multiple business types (e.g., a restaurant that manufactures its own sauces and sells them in stores).
What is an LLC?
A Limited Liability Company (LLC) is a hybrid structure offering limited liability and pass-through taxation.
What is a key benefit of an LLC?
An LLC offers limited liability protection and flexibility in management and pass-through taxation.
Name an example of a service business.
Examples include banks, law firms, and repair shops.
What is a key characteristic of an S-Corporation?
An S-Corporation avoids double taxation and is limited to 100 shareholders.
How many shareholders are allowed in an S-Corporation?
An S-Corporation is limited to 100 shareholders.