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Chapter 6
1) Describe the basic features that distinguish the four basic forms of business ownership sole proprietorships, general partnerships, C corporations, and limited liability companies.
=Sole proprietorships- owned by one person plus earnings and debts are the owner’s income and debt.
=Partnerships- Two or more owners that take a voluntary agreement.
=Corporations- a business entity created by filling a form.
2) Why do many entrepreneurs initially set up their businesses as sole proprietorships? Why do many successful entrepreneurs eventually decide to convert their sole proprietorship to some other form of ownership such as a corporation or LLC?
=Because sole proprietorship owners can establish a sole proprietorship instantly,
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You might not be able to make changes to suit your local market.
-The franchisor might go out of business, or change the way they do things.
10) What is a Franchise Disclosure Document (FDD) and why is it important?
=It’s a legal document which is presented to prospective buyers of franchises in the pre-sale disclosure process in the US. It’s important because it’s the document and the franchise agreement set out the complete turns under which you become a franchise.
Chapter 13
1) Explain the difference between channel of distribution and physical distribution.
=Channel distribution is the path that a product takes from the producer to the consumer and physical distribution is the actual movement of products that path.
2) Explain the role of channel intermediaries in the product distribution process. Why is their role important?
=Channel intermediaries are distribution organizations. They help move products from factories to the consumers.
3) How do intermediaries add value to the products they distribute? Find an example of a distributor that adds each of the six types of utility.
Intermediaries add value by solving market separations or gaps, helping to make markets between buyers and sellers.

4) What is the key difference between merchant wholesalers and agents/brokers? What are the risks and benefits of each approach for producers?
=Merchant wholesalers take legal title to the goods they distribute and reduce the risk for producer that the

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