5.3 Forms of Business Ownership

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10 questions
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A form of business ownership in which the business is owned and run by one person.

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A _____________ is owned by one or more shareholders and managed by a board of directors.

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A partnership agreement details the rules and procedures that guide ownership and operations and will typically identify the business name, investments, and other contributions of each partner.

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A(n) ______________________ is a combination of a partnership and a corporation which provides liability protection for the owners with a simpler set of organizing and operating requirements than a corporation.

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A(n) ________________ is a written contract granting permission to operate a business to sell products and services in a set way.

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These type of entities typically work in areas such as education, health care, charity, or the arts.

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Partnerships are free from income taxes.

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Sole proprietorships provide tax advantages for the owner.

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The company or person purchasing the rights to run the business is the franchiser.

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A franchise is a way to expand a business using the investments of others while maintaining control over the name, product quality, and operating procedures.