WEEK 7

Question 1

Business Organizational Options Types: (6)

Answer 1

• Sole Proprietorship
• General Partnership
• Limited Partnerships
• Corporation
• Franchise
• Merger and Acquisition

Question 2

Owned and run by one person.
Have no distinction between the business and the owner. Businesses where the owner is entitled to all business profits and is responsible for all business debts, losses, and liabilities. The simplest and most common legal structure for a
business

Answer 2

Sole Proprietorship

Question 3

Partnerships are businesses in which two or more people share ownership and responsibility. Each partner contributes to all aspects of the business, including money, property, labor, or skill. Each partner shares in the profits and losses of the business.

Answer 3

Partnerships

Question 4

Types of Partnerships

Answer 4

General Partnership
Limited Liability Partnerships

Question 5

Assume that profits, liability, and
management duties are divided equally among partners.

Answer 5

General Partnerships

Question 6

the legal notion that corporations, apart from their associated human beings

Answer 6

Corporate Personhood

Question 7

is a business model that involves one business owner

Answer 7

Franchise

Question 8

licensing trademarks and methods to an independent entrepreneur

Answer 8

Franchisor

Question 9

for a prescribed period
of time.

Answer 9

Franchisee

Question 10

is the consolidation of two
companies that, prior to the merger, were operating as independent entities.

Answer 10

Merger

Question 11

TWO TYPES OF MERGERS

Answer 11

Horizontal
Vertical

Question 12

Occurs between companies in the same industry

Answer 12

Horizontal

Question 13

Two or more firms that are operating at different levels within an industry’s supply chain

Answer 13

Vertical

Question 14

occurs when a company purchases the assets of another business (such as stock,
property, plants, equipment)

Answer 14

Acquisition