Ch.36 Worksheets - Chapter 36 Worksheets Worksheet – Sole...

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Chapter 36 Worksheets Worksheet – Sole Proprietorships 1. What best describes an entrepreneur? C. Someone who initiates and assumes the financial risk of a new business enterprise 2. The Factors an Entrepreneur Must Consider When Selecting an Organizational Form: (a) ease of creation (b) the liability of the owners, (c) tax considerations, (d) the ability to raise capital 3. Which of the following is NOT one of the three major business forms? Cooperative What is the simplest form of business? Sole Proprietorship Pressler wants to be his own boss and wants to start a business. He has to decide which form of business organization to adopt and will likely consider all of the following EXCEPT: Publicity and public relations Celia has convinced Maria to start a new business as a partnership rather than as a sole proprietorship. Celia wants to avoid: bearing the burden of all losses and liabilities Collette is a sole proprietor of a 3-D printing shop. She has considered changing her business organizational structure but cannot find an alternative that would give her the main advantage she enjoys as a sole owner, which is receiving all the profits Starting a sole proprietorship normally is easier and less costly than starting any other kind of business. A sole proprietor pays only personal income taxes (including Social Security and Medicare taxes) on the business's profits , which are reported as personal income. The sole proprietor has unlimited liability, or legal responsibility for all obligations that arise in doing business. Any lawsuit against the business can lead to unlimited personal liability for the owner of a sole proprietorship. For a sole proprietorship, creditors can pursue the owner's personal assets to satisfy any business debts. The sole proprietorship also has the disadvantage of lacking continuity after the death of the proprietor.
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Chapter 36 Worksheets Worksheet – Franchises 1. Franchise - Any arrangement in which the owner of a trademark, trade name, or copyright licenses another to use that trademark, trade name, or copyright, under specified conditions or limitations, in the selling of goods and services Franchisee - One receiving a license to use another’s (the franchisor’s) trademark, trade name, or copyright in the sale of goods and services.
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