Types of Businesses
This simplest form of business is owned and operated by one individual.
What is a sole proprietorship?
This document grants permission from the government to form a corporation.
What is a charter?
A written promise to repay borrowed money at a later date.
What is a bond?
A business investment where a person rents or leases a successful business model.
What is a franchise?
Corporations face this issue where income is taxed twice—once by the corporation and again by shareholders
What is double taxation?
This type of business is owned by two or more people who share responsibilities and profits.
What is a partnership?
This type of stock gives one vote in electing the board of directors.
What is common stock?
The amount originally borrowed in a loan or bond.
What is principal?
The person who buys into a franchise and pays startup costs.
What is a franchisee?
One major challenge of forming a corporation, involving legal and filing costs.
What is obtaining a charter?
In this type of partnership, at least one partner has reduced involvement and limited responsibility for debts.
What is a limited partnership?
This type of stock receives dividends first but does not allow voting rights.
What is preferred stock?
The money charged for using borrowed funds.
What is interest?
Who is responsible for the financial burdens of a franchise?
The franchisee
These owners get very little direct say in how a corporation operates.
Who are shareholders?
This business structure exists as a separate legal entity from its owners.
What is a corporation?
This is the legal process of separating a company’s assets and income from its owners.
What is incorporation?
Large corporations create these economic obstacles that make it hard for new competitors to enter markets.
What are barriers to entry?
Name one similarity between a business franchise and a media franchise.
What is both involve a shared brand or model? (or similar acceptable answer)
Due to their size and power, corporations face increased involvement and oversight from this group.
What is the government?
This type of organization operates like a business but does not seek financial gain.
What is a nonprofit organization?
This Supreme Court case raised questions about corporate rights and political spending.
What is Citizens United v. FEC?
This occurs when a business or individual cannot pay their debts and seeks a fresh start.
What is bankruptcy?
The creator and owner of the business model that others pay to use.
What is a franchisor?
This nonprofit service association helps motorists with roadside assistance, insurance, and lobbying.
What is a cooperative / AAA? (triple A)