Multiple Choice
A traditional business serving customers in a physical building is known as what?
a. Virtual enterprise
b. Click and Mortar
c. Brick and Mortar
d. Limited liability company
c. brick and mortar
A business owned and operated by a single individual
What is a Sole proprietorship?
The three types of customer business models are business to consumer, business to business, and government.
What are the three types of customer business models?
Advantages-Infrastructure, brand recognition, low-risk
Disadvantages-Costs, restrictions, limited products
What is a franchise?
A traditional business serving customers in a physical building as contrasted to an online business.
What is brick and mortar?
A type of treaty that affects business trade is called:
a. international law
b. global law
c. customs
d. trade agreement
d. trade agreement
A type of law that declares government control
What is a regulation?
Sole proprietorship, partnership, LLC, and corporation.
What are the different forms of business ownership?
Advantages-Inexpensive to form, authority, owner keeps all profits
Disadvantages-Unlimited liability, limited capacity, difficult to find investors
What is a sole proprietorship?
A business that operates solely online, also known as ecommerce
What is virtual enterprise?
a. Cooperative
b. partnership
c. corporation
d. sole proprietorship
a. cooperative
A business owned by stockholders who share in profits and losses.
What is a corporation?
A business model that is granted permission by a company to conduct business under that company's name. Ex. Subway, Raising Canes
What is a franchise?
Advantages-affordable to start, more available capital, ability to combine skills and resources
Disadvantages-possibility of disagreements, limited life, and unlimited liability
What is a partnership?
Between brick and mortar and virtual enterprise
What is click and mortar?
What type of corporation requires its owners to file their profits and losses on their personal tax returns?
a. S-corporation
b. B-corporation
c. P-corporation
d. None of the above
a. S-corporation
A type of business that is owned and managed by members of a group who benefit from services the business provides.
What is a cooperative?
Form of business owned by two or more individuals who share management and profits.
What is a partnership?
Advantages-limited liability, capable of raising funds, continued life, many decision makers
Disadvantages-loss of control, formation costs, double taxation
What is a Corporation?
Does not require physical interaction with a customer.
What is virtual enterprise?
A group of individuals who represent stockholders and make high-level policy and management decisions for a corporation are called__________.
a. partners
b. entrepreneurs
c. Board of Directors
d. Members
c. Board of Directors
Businesses that sell products to other businesses
What is business-to-business market?
* Name of partners
* Compensation for each partner
* Responsibilities of each partner
* How to resolve partner disputes
What are some common elements of a partnership agreement?
Advantages-Limited liability, pass-through taxation, fewer government regulations
Disadvantages-Filing fees, self-employment tax, no national laws for operation
What is a LLC(limited liability company)?
Doctor's office or dentist office requires this