FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 5: How to Form a Business

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

Multiple Choice

Review LaterAdd Note

Review Later

In a cooperative, members/customers

A) democratically control their businesses by electing a board of directors.
B) are known as limited partners.
C) each have unlimited liability for the debts of the firm.
D) take turns serving on the board that manages the company.

E) B) and C)
F) None of the above

Correct Answer

verified

Show Answer

Question 82

Multiple Choice

Review LaterAdd Note

Review Later

A franchise can be formed

A) only as a general partnership.
B) only as a corporation.
C) as either a corporation or partnership, but not as a sole proprietorship.
D) as a corporation, partnership, or sole proprietorship.

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 83

Multiple Choice

Review LaterAdd Note

Foreign investment in U.S. companies continues to be strong. When Belgian-based In-Bev purchased the largest beer company in the U.S., Anheuser-Busch, this action constituted a(n) ________ with a negotiated selling price of $52 billion.

Ivy is investing in a home cleaning franchise called HomeKeepers. At her first interview with the franchisor's selling agent, she was told the parent company expects 5% royalties. What are royalties?

One method to avoid conflicts between partners is to solicit the services of a lawyer to create a well-written partnership agreement.

Finnegan is a limited partner in Gettout & Associates, a local financial consulting company. Heywood U. Gettout is one of the general partners in the company and is needing to temporarily leave the company to attend to some personal matters. Heywood has asked Finnegan to perform his managerial duties while he is gone. As a limited partner, Finnegan

It is not unusual for members of cooperatives to work for and help manage their cooperative.

A(n) ________ is an arrangement whereby someone with a proven idea for a business sells the rights to use the business model, to sell a product or service to others in a given territory.

Franchising is a key component of the U.S. economy. What are the major advantages and disadvantages of franchising?

Which of the following statements is the most accurate?

According to the box, "Kickstarting a Benefit Corporation," a benefit corporation is

A master limited partnership (MLP) is

Although most new firms start out as sole proprietorships, few large firms are organized this way. Why is the sole proprietorship such a popular form of ownership for new firms? What features of the sole proprietorship make it unattractive to growing firms?

When Genna confided in Lou and Al that she too was concerned about adding additional risk, Lou suggested that they explore the possibility of a different type of business ownership, a(n) ________, which has very flexible ownership rules and would give them more choices in how the company's earnings are taxed while still protecting all owners from high levels of risk.

The owners of a limited liability company (LLC) must pay self-employment taxes on any profits they earn, even if they did not obtain a salary from the company.

One reason that a firm may choose to merge or acquire another company would be to diversify products or services.

In order to protect all parties and minimize misunderstandings among partners, all terms of the partnership should be spelled out in writing.

If a partner in a limited partnership dies, the partnership ceases to exist.

When one of the owners of a corporation dies, the corporation legally ceases to exist.

An advantage of forming a sole proprietorship is that it allows the owner to have more time for leisure activities.