Question 1

Sole proprietorships:

Accepted Answer

A)  are double taxed
B)  have unlimited liability
C)  are more difficult to dissolve than partnerships
D)  find is easy to raise needed capital
E)  are more closely regulated by the government than other forms of business

Question 2

Ease of formation, flexibility, and diversity of management are advantages of the _____ form of business ownership.

Accepted Answer

A)  partnership
B)  joint venture
C)  cooperative
D)  conglomerate
E)  corporation

Question 3

The first step to incorporating a company is to:

Accepted Answer

A)  select the company's name
B)  write the articles of incorporation
C)  buy necessary licenses and pay required taxes
D)  hold an organizational meeting
E)  create a board of directors

Question 4

Restricted operating freedom in franchising means that the franchisee must conform to:

Accepted Answer

A)  franchise product standards
B)  facilities design
C)  operating rules
D)  a specific, defined territory
E)  all of the above

Question 5

An _____ is the purchase of a corporation by another corporation or by an investor group.

Accepted Answer

The answer of An _____ is the purchase of a...

Question 6

IBM purchased MRO Software Inc.for $740 million.MRO was a niche provider of software and services to help customers including nuclear power plants and oil companies.IBM, plans to fold MRO into its software unit.This is an example of a(n) :

Accepted Answer

A)  joint venture
B)  merger
C)  conglomerate
D)  voluntary union
E)  acquisition

Question 7

A corporation:

Accepted Answer

A)  does not have a life separate from its owners
B)  cannot sue or be sued
C)  does not have a size limitation
D)  ends when the owner of the corporation charter dies
E)  is one of the easy types of businesses to form

Question 8

A disadvantage of a partnership is that any partner may have to pay all of the debts of the company regardless of who incurred the debts.

Accepted Answer

A) True 
 B)False

Question 9

In 2004, Albertson's Inc.purchased Southern California's premier fresh, gourmet, and specialty food retailer, Bristol Farms.This was an example of an acquisition.

Accepted Answer

A) True 
 B)False

Question 10

Distinguish between a merger and an acquisition.

Accepted Answer

A merger is a combination of two or more...

Question 11

A term that means that business damages and/or debts can also be attached to the personal assets of the owners is ______ liability.

Accepted Answer

A)  limited
B)  informal
C)  funding
D)  unlimited
E)  asset

Question 12

Changing demographics drive the franchise industry growth.

Accepted Answer

A) True 
 B)False

Question 13

Why do most large companies have outside directors on their boards?

Accepted Answer

A)  to meet federal government requirements
B)  to create globalization efforts
C)  to provide independent benchmarks
D)  to provide technology leadership
E)  to bring a fresh view to all of the corporation's activities

Question 14

A _____ is an organization formed by individuals or businesses with similar interests to gain benefits from size and collective ownership.

Accepted Answer

The answer of A _____ is an organization formed by...

Question 15

Thom Georges wants to open a store where he sells nothing but antique architectural features that he can salvage from old houses being torn down to make way for progress.He has an eye for the kind of doors, windows, mantels, and so forth that decorators want, but he does not have all the funding he needs to get started.He has invited his parents to invest $40,000 in the enterprise.He has told them that if they do invest, they would have liabilities in the firm equal to but no greater than their investment.Georges is trying to get them to form a _____ with him.

Accepted Answer

A)  closely-held corporation
B)  cooperative
C)  general partnership
D)  joint venture
E)  limited partnership

Question 16

Double taxation in a corporation means:

Accepted Answer

A)  the corporation must pay taxes twice a year
B)  earnings of the corporation and dividends of the shareholders both are taxed
C)  corporations can double their earnings without higher taxes
D)  corporations must pay both state and federal taxes
E)  none of the above

Question 17

Jayson Tully is contemplating the purchase of a Popeye's Chicken franchise.Tully has made a list of the disadvantages that he assumes he will face as a new business owner.Which of the following is actually an advantage?

Accepted Answer

A)  assistance in building plans
B)  conformity to operating procedures
C)  royalty fees
D)  defined territory
E)  up-front franchise fee

Question 18

Clarence Danvers is buying a Cinnabon franchise at the airport in Tulsa.Danvers knows that he will get all of the following benefits EXCEPT:

Accepted Answer

A)  a proven track record
B)  a set operating procedures
C)  assistance in personal income tax preparation
D)  standard goods and services
E)  national advertising

Question 19

What is double taxation?

Accepted Answer

Corporations must pay federal ...

Question 20

U.S.Lumber Company's purchase of EnviroPlastics, a manufacturer of plastic cutlery, is an example of a _____ merger.

Accepted Answer

A)  conglomerate
B)  combination
C)  horizontal
D)  vertical
E)  cooperative

Exam 4: Forms of Business Ownership

What is double taxation?

Correct Answer
verified
Corporations must pay federal ...
View Answer

Jayson Tully is contemplating the purchase of a Popeye's Chicken franchise.Tully has made a list of the disadvantages that he assumes he will face as a new business owner.Which of the following is actually an advantage?

Correct Answer
verified

A term that means that business damages and/or debts can also be attached to the personal assets of the owners is ______ liability.

Correct Answer
verified

The first step to incorporating a company is to:

Correct Answer
verified

Restricted operating freedom in franchising means that the franchisee must conform to:

Correct Answer
verified

A _____ is an organization formed by individuals or businesses with similar interests to gain benefits from size and collective ownership.

Correct Answer
verified

Clarence Danvers is buying a Cinnabon franchise at the airport in Tulsa.Danvers knows that he will get all of the following benefits EXCEPT:

Correct Answer
verified

An _____ is the purchase of a corporation by another corporation or by an investor group.

Correct Answer
verified

Ease of formation, flexibility, and diversity of management are advantages of the _____ form of business ownership.

Correct Answer
verified

Correct Answer
verified

In 2004, Albertson's Inc.purchased Southern California's premier fresh, gourmet, and specialty food retailer, Bristol Farms.This was an example of an acquisition.

Correct Answer
verified

Double taxation in a corporation means:

Correct Answer
verified

Why do most large companies have outside directors on their boards?

Correct Answer
verified

A corporation:

Correct Answer
verified

Distinguish between a merger and an acquisition.

Correct Answer
verified
A merger is a combination of two or more...
View Answer

IBM purchased MRO Software Inc.for $740 million.MRO was a niche provider of software and services to help customers including nuclear power plants and oil companies.IBM, plans to fold MRO into its software unit.This is an example of a(n) :

Correct Answer
verified

Sole proprietorships:

Correct Answer
verified

U.S.Lumber Company's purchase of EnviroPlastics, a manufacturer of plastic cutlery, is an example of a _____ merger.

Correct Answer
verified

Changing demographics drive the franchise industry growth.

Correct Answer
verified

A disadvantage of a partnership is that any partner may have to pay all of the debts of the company regardless of who incurred the debts.

Correct Answer
verified

Exam 4: Forms of Business Ownership

What is double taxation?

Correct AnswerverifiedCorporations must pay federal ...View AnswerShow Answer

Jayson Tully is contemplating the purchase of a Popeye's Chicken franchise.Tully has made a list of the disadvantages that he assumes he will face as a new business owner.Which of the following is actually an advantage?

Correct AnswerverifiedShow Answer

A term that means that business damages and/or debts can also be attached to the personal assets of the owners is ______ liability.

Correct AnswerverifiedShow Answer

The first step to incorporating a company is to:

Correct AnswerverifiedShow Answer

Restricted operating freedom in franchising means that the franchisee must conform to:

Correct AnswerverifiedShow Answer

A _____ is an organization formed by individuals or businesses with similar interests to gain benefits from size and collective ownership.

Correct AnswerverifiedShow Answer

Clarence Danvers is buying a Cinnabon franchise at the airport in Tulsa.Danvers knows that he will get all of the following benefits EXCEPT:

Correct AnswerverifiedShow Answer

An _____ is the purchase of a corporation by another corporation or by an investor group.

Correct AnswerverifiedShow Answer

Ease of formation, flexibility, and diversity of management are advantages of the _____ form of business ownership.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In 2004, Albertson's Inc.purchased Southern California's premier fresh, gourmet, and specialty food retailer, Bristol Farms.This was an example of an acquisition.

Correct AnswerverifiedShow Answer

Double taxation in a corporation means:

Correct AnswerverifiedShow Answer

Why do most large companies have outside directors on their boards?

Correct AnswerverifiedShow Answer

A corporation:

Correct AnswerverifiedShow Answer

Distinguish between a merger and an acquisition.

Correct AnswerverifiedA merger is a combination of two or more...View AnswerShow Answer

IBM purchased MRO Software Inc.for $740 million.MRO was a niche provider of software and services to help customers including nuclear power plants and oil companies.IBM, plans to fold MRO into its software unit.This is an example of a(n) :

Correct AnswerverifiedShow Answer

Sole proprietorships:

Correct AnswerverifiedShow Answer

U.S.Lumber Company's purchase of EnviroPlastics, a manufacturer of plastic cutlery, is an example of a _____ merger.

Correct AnswerverifiedShow Answer

Changing demographics drive the franchise industry growth.

Correct AnswerverifiedShow Answer

A disadvantage of a partnership is that any partner may have to pay all of the debts of the company regardless of who incurred the debts.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Corporations must pay federal ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A merger is a combination of two or more...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified