100% solutions to Forms of Business Structure assessment

Why Have Business Structures? One way to identify different business structures is by how many owners it involves, alternatively they can be categorized by their legal separation from the owners. What form of business ownership is generally the simplest for a small business to set up?

Partnerships – Limited Partnerships Partnerships are like sole proprietorships, except two or more owners form a business together. A group of accountants wish to form a business together. Which of the following types of business arrangement would be most suitable to their needs?

Partnerships – Limited Partnerships Partnerships are like sole proprietorships, except two or more owners form a business together. Limited partners bear lower risk than general partners because:

Partnerships – Limited Partnership – Advantages and Disadvantages Another form of partnership is the limited partnership. This partnership has one or more general partners, or “G.P.” for short, who manage the business. Which of the following features are advantages to using a limited liability partnership? Select all that apply.

Corporations and Cooperatives – Corporations – Advantages and Disadvantages A vital advantage of a corporation is the legal separation of the enterprise from its owners. Which of the following features is a disadvantage to incorporation?

Partnerships – Incorporated Joint Venture An incorporated joint venture is a variation of a partnership arrangement and a corporation. Which type of business arrangement involves two separate business entities pooling their resources to carry out a particular business transaction (one with a narrow scope)?

Partnerships – Incorporated Joint Venture The scope of a joint venture is narrower than a partnership. A joint venture agreement governs the venture partners and gives more certainty before starting to work together. Which of the following statements pertain to a joint venture and not to a partnership business arrangement? It has a limited purpose Profit is the primary goal Involves the sharing of gross returns rather than profits Each person or entity involved is liable only for an agreed-upon portion of the liabilities Allows for the right of each person or entity involved to dispose of any interest in the property subject to the agreement

Corporations and Cooperatives – Cooperatives Corporations and cooperatives are structures that allow organizations to have their own separate legal identity. Which of the following statements are correct in regards to a Cooperative? Select all that apply.

Corporations and Cooperatives – Franchises A franchise is an arrangement in which someone pays for the right to use another company’s business model. Which statement about the franchisor-franchisee relationship is NOT accurate?

Corporations and Cooperatives – Franchises A franchisee agrees only to sell a group of products and services provided directly by the seller. The seller, or franchisor, uses their trademark and marketing system to support the franchisee’s business locally. A franchisee may feel constrained by the franchisor's operating polices. Why might this disadvantage to the franchisee be considered an advantage to the lender? The franchisee:

Why Have Business Structures? Business structures arise in part based on the number of owners involved, as well as how legally separate they wish to remain from the business itself. Which of the following statements about business structures is NOT true?

Corporations and Cooperatives – Defining Corporations and Cooperatives Corporations and cooperatives are structures that allow organizations to have their own separate legal identity. Which of the following statements about corporations is accurate?

Corporations and Cooperatives – Nonprofit and Not-for-profit Organizations Nonprofit organizations (or NPOs) and not-for-profit organizations (or NFPs) are business structures we often see as analysts. As the name suggests, these entities have a purpose other than profit. Their focus is on public, social, or other community benefits. Which of the following statements about nonprofit and not-for-profit organizations is not true?

Partnerships – Partnerships, Limited Liability Partnerships, and Incorporated Joint Ventures (JV) One way to identify different business structures is by how many owners it involves, alternatively they can be categorized by their legal separation from the owners. Consider the following scenario: A new project in town has put out a request for proposals from smaller contractors. Jane and John are both sole proprietors interested in the project, however they worry it may be too much work for one person. Which business structure is available to minimize risk and share in the work and success for only this project?

Corporations and Cooperatives – Franchises A franchise is unlike any other structure outlined in this course as it’s not a legal business entity. A franchise is an arrangement in which someone pays for the right to use another company’s business model. Which of the following business types are suitable for a franchise? Select all that apply.