Page 1 Name:______________________________ 1 What is an advantage of a franchise over a sole proprietorship? A B C D 2 Can sell stock to raise money Easy to start the business Owner keeps all profits Require a contract to start Goodwill Industries helps poor and homeless people with the money raised by selling donated products in their stores. Goodwill is classified as what kind of business? A B 7 Corporation has only one or two owners. Corporation is usually owned by one person. Corporation requires a legal charter to start. The owners of the corporation control the business. How are a franchise and a sole proprietorship alike? A B C D 6 Partnerships can be started up quickly. Partnerships can be issue stock to raise money. Partnerships have protection from the government. Partnerships need a legal charter to begin. How is a corporation different from a sole proprietorship or partnership? A B C D 5 Corporations are owned by only one person. Corporations can sell stock to raise money for the business. Sole proprietorship's require a legal charter to start the business. Sole proprietorship are global businesses. Steven and his brothers want to start a plumbing business together. What is an advantage of organizing the business as a partnership rather than a corporation? A B C D 4 Franchises can sell stock to start up the business. Franchises do not have to work in the business. Parent company provides training and support to franchisee. Parent company will pay all of the franchisee's start up cost. How is a corporation different from a sole proprietorship? A B C D 3 Date:_______________________________ Non-profit For-profit Norman and Jones Pet Sitting business is the best pet sitting business in Mount Airy. How is Norman and Jones Pet Sitting business classified? A B C D Combination product and service Non-profit Product type Service prodiver Page 2 8 Homeless shelters, the March of Dimes, Salvation Army, and Manna Food Bank are all classified as which type of business? A B C D 9 Sporting Goods Store, CD Stores, and Clothing Stores are all classified as which type of business? A B C D 10 Combination product and service Product type Service provider Non-profit What is the difference between wants and needs? A B C D 13 Combination goods and services Non-profit Product type Service provider Plumbing, lawn care, electrical work, telephone repair, and house cleaning are all considered what type of business? A B C D 12 Combination product and service Non-profit Goods or Products provider Service provider Beauty salons, home improvement stores, and drug stores are classified as which type of business? A B C D 11 Combination product and service For-profit Non-profit Product type Needs are goods and wants are services. Needs are necessary for survival and wants are nice to have. Needs are nice to have, wants are necessary for survival. Needs are services and wants are goods. Which is NOT a want? A B C D Cleaning Service Entertainment Housing Recreational Activities Page 3 14 Which is a need? A B C D 15 Entrepreneurs enter business because they desire to make money. The term that best describes this is: A B C D 16 Corporation Consumer Competition Profit Motive A business owned by two or more people is called a: A B C D 20 Corporation Franchise Sole proprietorship Partnership Contest between businesses to win customers is called: A B C D 19 Corporation Franchise Sole Proprietorship Partnership Subway is a very familiar business known as a: A B C D 18 Greed Pricing motive Profit motive Service Microsoft is a very familiar business and is known as a: A B C D 17 Clothing Earrings iPod Skateboard Corporation Franchise Sole Proprietorship Partnership Pizza Hut is a familiar business known as a : A B C D Corporation Franchise Sole Proprietorship Partnership Page 4 21 Bank of America is a familiar business known as a: A B C D 22 Denny's is a familiar business known as a: A B C D 23 Microsoft Dell Yahoo AOL A CEO would work for a: A B C D 27 Ford Frd Fd F Google's competition DOES NOT include which of these businesses: A B C D 26 Goods or Products Services Combination Product and Services For-profit Ford Motor company's ticker symbol is: A B C D 25 Corporation Franchise Sole Proprietorship Partnership Tangible items that businesses sell (those items that can be placed in a bag) are called: A B C D 24 Corporation Franchise Sole Proprietorship Partnership Corporation Franchise Sole Proprietorship Partnership Which business type is most difficult to start? Is it a: A B C D Corporation Franchise Sole Proprietorship Partnership Page 5 28 No paperwork is required to start which of the following types of business? A B C D 29 Which type of business allows the owner to keep all of the profit? A B C D 30 Corporation Franchise Sole Proprietorship Partnership Corporation Franchise Sole Proprietorship Partnership Which type of business can choose to pay its stockholders a dividend? A B C D Corporation Franchise Sole Proprietorship Partnership Page 6 Answer Key : Question: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Answer C B A C B A D C A C B C A C A B C D B A B A D B A A C C A