ENTREPRENEURSHIP {CH. 7}
Which of the following is NOT an advantage to buying an existing business?
capital is not required because the business already exists
A(n) ____ is a business that has the legal rights of a person but is independent of its owners.
corporation
____ are distributions of corporate profits to the shareholders
dividends
A(n) _____ is a legal agreement that gives an individual the right to market a company's products or services in a particular area.
franchise
An existing business may have built up a considerable amount of ____ ____, or customer loyalty.
good will
A franchisee
is dependent on the performance of other franchisees in the chain
The MAIN reason entrepreneurs set up corporations is because
liability is limited to the amount of money each shareholder invested in the company
Owners of a limited liability company are known as ____
members
A business owned by two or more people is a(n) ______.
partnership
A(n) _____ is the grant of a property right to an inventor to exclude others from making, using, or selling his or her invention.
patent
A unit of ownership in a corporation is called a
share of stock
A business owned exclusively by one person is called a
sole proprietorship
The costs associated with beginning a business, such as renting a facility, equipping the outlet, and purchasing inventory, are called _____ costs.
startup
A corporation's board of directors is responsible for all of the following EXCEPT
the day-to-day management of the corporation
All of the following information is included in a Franchise Disclosure Document EXCEPT
the name, address, and phone number of all current franchisees
If you are considering buying an existing business, ask the current owner to provide you with a complete financial accounting of operations for at least
the past three years
A(n) ______ is a name, symbol, or special mark used to identify a business or brand of product.
trademark
A(n) _____ is an expert on determining the value of a business and can help an entrepreneur determine a price to offer for an existing busines
valuator
Local governments control the types of buildings that can be built in different areas through the use of
zoning regulations
This law protects small businesses from unfair pricing practices.
Robinson-Patman Act
