Question 17(1 point)

Laryssa Wu is a bright, hard-working, and responsible young woman who has always wanted to own a business. However, she realizes that she lacks training and experience in some areas of running a business and doesn't have confidence in her ability to start a new company from scratch. She also is nervous about the amount of risk involved in business ownership. These concerns suggest that Laryssa might be interested in becoming a franchisee in a business format franchise.

Question 17 options:

TrueFalse

Question 18(1 point)

Which of the following is a serious drawback of sole proprietorships?

Question 18 options:

They are heavily regulated by the federal government.

They expose their owners to unlimited liability for the company's debts.

They are difficult and inexpensive to form.

They result in double taxation of the company's earnings.

Question 19(1 point)

Which of the following is a disadvantage of corporations as a form of business ownership?

Question 19 options:

Their growth is limited because of difficulties in raising financial capital.

It is easy to start up and shut down.

They are subject to single taxation.

They are more expensive and complex to form than most other types of business.

Question 20(1 point)

What is the term for the business entity in a franchise relationship that allows others to operate a business using resources it supplies in exchange for money and other considerations?

Question 20 options:

a partner

a franchisee

a general corporation

a franchisor