#1
Which of the following is not a type of entrepreneurial business structure?
Agency
ExplanationAgency is not a recognized entrepreneurial business structure.
#2
What is the primary advantage of a sole proprietorship?
Ease of formation
ExplanationThe primary advantage of a sole proprietorship is the ease of its formation.
#3
Which of the following statements best describes a partnership?
A business owned and managed by two or more individuals
ExplanationA partnership is a business owned and managed by two or more individuals.
#4
What is a characteristic of a corporation?
Limited liability for owners
ExplanationCorporations provide limited liability for their owners.
#5
Which of the following is a characteristic of a cooperative business structure?
Profit distribution based on ownership
ExplanationCooperative business structures distribute profits based on ownership.
#6
What does the term 'franchise' refer to in the context of business?
A business agreement that allows an individual to operate a business under the brand and systems of another
ExplanationA franchise is a business agreement allowing operation under another's brand and systems.
#7
Which of the following is a disadvantage of a sole proprietorship?
Difficulty in raising capital
ExplanationSole proprietorships face a challenge in raising capital.
#8
What is a key feature of an LLC (Limited Liability Company)?
Limited liability for owners
ExplanationAn LLC offers limited liability protection for its owners.
#9
Which of the following is NOT typically a responsibility of a limited liability company (LLC) owner?
Attending shareholder meetings
ExplanationLLC owners typically do not attend shareholder meetings.
#10
Which of the following is a feature of a B Corporation?
Required to meet rigorous standards of social and environmental performance, accountability, and transparency
ExplanationB Corporations must meet high standards of social and environmental performance.
#11
What is a characteristic of a hybrid business structure?
Combination of features from different legal structures
ExplanationHybrid structures combine features from various legal structures.
#12
What is a characteristic of a social enterprise?
Driven by a mission to address social or environmental issues
ExplanationSocial enterprises are driven by a mission to address social or environmental issues.