ABC Corporation wants to open their first facility. They need capital to rent and building, hire employees, and purchase inventory. Sam Walton is a rich investor, and ABC Corporation has asked Sam if he'd invest $50,000 to help start-up the business. They have agreed that Sam will receive a high return on his investment. Sam's investment will be what type of financial resource for ABC Corporation?
Mary works alone in her catering business and enjoys scheduling her daily routine. She is experiencing which advantage of a sole proprietorship over a corporation?
Owner control of decisions
Owner limited life
Owner recipient of 100% of the profit
Owner unlimited liability
Which organization assists small business owners get up and running with their sole proprietorships?
SBA-Small Business Administration
FDA-Food and Drug Administration
FTC-Federal Trade Commission
An advantage of a sole proprietorship is:
Capital is easy to obtain
Share the workload
Ease of formation
When a business needs human resources outside the company, it can hire an outside firm to perform the activity without hiring in-house employees for that purpose. This process is called:
Firing an employee
Expanding your company
A type of business ownership in which one or more of the owners does not have full liability is called a:
Limited Liability Partnership
A company sold 500 shares of stock and still relies on a central body of people for financial directions. This is an example of what type of business?
Wendy is free of obligation of a role in her business and is an unknown partner, but she collects some of the profits each month. This is an example of what type of partner?
An entity (something that exists by itself) with the legal authority to act as a single person is what type of business?
Who owns public corporations?
The board of directors only
The original entrepreneur only
A group of individuals wants to open a museum that will display items from early settlers of the area. The group will charge just enough admission to pay the expenses of operating the museum. Will the museum be a business?
No, the museum will not be considered a business.
No, the museum will be a charitable institution.
Yes, the museum will be a not-for-profit business.
Yes, the museum will be a for-profit business.
Sally has decided she wants to own and operate her own McDonald's franchise. She has gone through the application process with McDonald's Corporation and has invested $1,000,000 to open her location. She has learned that she has to run her location by using the corporations colors, menu items, recipes, and forms of production. What type of franchise is Sally's restaurant?
Business format franchise
Brand name franchise
What states that only a certain number of a specific franchise can operate in a certain geographical area?
Sole purpose territory
Subway charges a franchise fee to entrepreneurs that want to open their own location. The franchise fee that Subway charges covers all of the following except:
Access to suppliers
Startup marketing kits
Hiring all employees
An ongoing royalty fee is:
a monthly or quarterly fee that the franchisee pays to the franchisor typically calculated as a percentage of gross sales.
a fee paid when the business starts up
a set amount of money paid to the franchise every year
an attorney fee
The two main divisions of the trade industry are:
manufacturers and wholesalers.
wholesalers and retailers.
producers and retailers.
wholesalers and producers.
AT&T and Time Warner announced on October 22, 2016, reached a deal in which AT&T will buy the media company for a reported $86 billion, morphing AT&T into a media heavy hitter. The deal is expected to be announced officially later and if it happens it will be by far the largest deal the media industry has seen. When AT&T bought Time Warner this has caused:
Three primary factors that affect the organizational structure of a business include interpersonal relationships, tasks, and:
What type of organizational structure is best for smaller companies or those that focus on a single product or service?
What is the measurement of how many workers are supervised by one manager?
Line of Command
Line of Authority
Span of Control
Adrian and Bailey own a salon. Adrian is a nail technician and Bailey is a cosmetologist. Adrian gives Bailey a pedicure. Bailey gives Adrian a haircut. They do not pay money for the services provided. What does this demonstrate?