Which of the following are benefits enjoyed by sole proprietorships? Select the two correct answers.(1 point)

Question

Responses

earning goes directly to the owner
earning goes directly to the owner

easy access to credit
easy access to credit

control of decision-making
control of decision-making

unlimited liability
unlimited liability
Question 2
Which of the following statements is true about sole proprietorships?(1 point)
Responses

A sole proprietorship is the simplest form of business organization.
A sole proprietorship is the simplest form of business organization.

The owner of the sole proprietorship must report to shareholders.
The owner of the sole proprietorship must report to shareholders.

A sole proprietorship can continue if the owner dies.
A sole proprietorship can continue if the owner dies.

The owner of the sole proprietorship has limited liability.
The owner of the sole proprietorship has limited liability.
Question 3
Which of the following is a characteristic of general partnerships? (1 point)
Responses

The partnership has limited life.
The partnership has limited life.

The partners have limited liability.
The partners have limited liability.

Each partner has different rights when representing the partnership.
Each partner has different rights when representing the partnership.

One person is the owner of a general partnership.
One person is the owner of a general partnership.
Question 4
What primary responsibility do the shareholders of a corporation have?(1 point)
Responses

electing a board of directors
electing a board of directors

hiring management to oversee production
hiring management to oversee production

overseeing production
overseeing production

providing their own labor for the production process
providing their own labor for the production process
Question 5
You have recently discovered that a local business has been designated 501(c)(3). Which of the following must be true?(1 point)
Responses

The business has federal tax exemptions.
The business has federal tax exemptions.

The business is a private foundation.
The business is a private foundation.

The business is a public charity.
The business is a public charity.

The business does not earn profits.
The business does not earn profits.
Question 6
Which of the following benefits do franchisees enjoy over other small business owners? Select the two correct answers.(1 point)
Responses

Franchises have a lower 5-year failure rate than other small businesses.
Franchises have a lower 5-year failure rate than other small businesses.

Franchises benefit from the successful marketing provided by franchisors.
Franchises benefit from the successful marketing provided by franchisors.

Franchises are less expensive to operate than other small businesses.
Franchises are less expensive to operate than other small businesses.

Franchises have more control over the goods and services that they provide.
Franchises have more control over the goods and services that they provide.

Franchises have lower start-up costs than other small businesses.

Answer 1

Here are the correct responses for each question based on the context provided:

Question 1: Benefits enjoyed by sole proprietorships
Correct Answers:

• earning goes directly to the owner
• control of decision-making

Question 2: True statements about sole proprietorships
Correct Answer:

• A sole proprietorship is the simplest form of business organization.

Question 3: Characteristic of general partnerships
Correct Answer:

• The partnership has limited life.

Question 4: Primary responsibility of shareholders of a corporation
Correct Answer:

• electing a board of directors

Question 5: 501(c)(3) designation must be true
Correct Answer:

• The business has federal tax exemptions.

Question 6: Benefits franchisees enjoy over other small business owners
Correct Answers:

• Franchises have a lower 5-year failure rate than other small businesses.
• Franchises benefit from the successful marketing provided by franchisors.

Feel free to ask if you have more questions!