Question 1

It is not unusual for members of co-operatives to work for and help manage their co-operative.

Accepted Answer

A) True 
 B)False

Question 2

Compared to a sole proprietorship,which of the following is considered an advantage of a general partnership?

Accepted Answer

A)  Limited liability for all owners.
B)  Ease and flexibility in transferring shares of ownership to others.
C)  Equal division of profits among the owners.
D)  More financial resources.

Question 3

Jocelyn belongs to food a co-operative in her community.As a member,she can expect to have a vote in the election of the co-operative's board of directors.

Accepted Answer

A) True 
 B)False

Question 4

An evaluation of franchising would conclude that this type of arrangement:

Accepted Answer

A)  has little chance of success outside the United States because many foreign countries do not allow such arrangements.
B)  has become the dominant form of business organization in Canada because it has many advantages and almost no disadvantages.
C)  appeals to people who want to own a business,but are not comfortable starting a company from scratch.
D)  has a much higher risk of failure than independent companies.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

In a general partnership,all active partners are entitled to an equal share of the firm's profits.

Accepted Answer

A) True 
 B)False

Question 7

One disadvantage of________is the initial cost of starting this form of business organization.

Accepted Answer

A)  limited partnerships
B)  general partnerships
C)  corporations
D)  sole proprietorships

Question 8

A private corporation can issue stock to a child.

Accepted Answer

A) True 
 B)False

Question 9

Home-based franchisees feel less isolated than who?

Accepted Answer

A)  home-based entrepreneurs
B)  managers
C)  owners
D)  customers

Question 10

The corporation is the most common form of business ownership.

Accepted Answer

A) True 
 B)False

Question 11

The__________ is usually the easiest form of business to start and end.

Accepted Answer

A)  co-operative
B)  corporation
C)  sole proprietorship
D)  limited partnership

Question 12

In a limited liability partnership,each partner's risk of losing personal assets is:

Accepted Answer

A)  nonexistent.
B)  determined entirely by the maximum loss provision established by the articles of co-partnership.
C)  limited to losses that result from their own acts and omissions and the acts and omissions of those who work under their supervision.
D)  limited to the amount that partner invested in the company.

Question 13

Les is a franchisee in the Far Horizons Travel Agency franchise.As a franchisee,Les is guaranteed the right to retain all of his franchise's profits.

Accepted Answer

A) True 
 B)False

Question 14

The board of directors for a corporation is elected by its:

Accepted Answer

A)  Shareholders.
B)  managers.
C)  employees.
D)  creditors.

Question 15

Which of the following statements about buying a franchise is most accurate?

Accepted Answer

A)  Before purchasing a franchise,the buyer should carefully evaluate the franchise,the franchisor,his or her own situation,and the nature of the market.
B)  Buying a franchise is the simplest and least expensive way to set up a business,since the franchisor has already worked out all of the details for setting up and running the business.
C)  Franchise agreements are simple to evaluate,since federal law requires that all such agreements must be written in plain English with all fees and terms clearly explained.
D)  One of the advantages of buying a franchise is that franchisors are so closely regulated that there is virtually no chance for scams to succeed.

Question 16

Is it easy to start or end your own business? i.e.a sole proprietorship.

Accepted Answer

All you have to do to start your own bus...

Question 17

Today,franchising accounts for nearly 40 percent of the national retail sales in Canada.

Accepted Answer

A) True 
 B)False

Question 18

If a sole proprietorship fails,the owner may lose whatever was invested in the business,but the owner's personal assets are not at risk.

Accepted Answer

A) True 
 B)False

Question 19

The franchisee often must pay the franchisor a share of profits or a percentage commission on sales known as a royalty.

Accepted Answer

A) True 
 B)False

Question 20

Sandy is a talented fashion designer who wants to start her own women's sportswear company.However,she is concerned about some problems she might face.She knows little about actual production methods or the financial aspects of running a business,and has little personal wealth to put into the company.In order to overcome these problems,Sandy should start her business as a sole proprietorship.

Accepted Answer

A) True 
 B)False

Exam 6: Forms of Business Ownership

If a sole proprietorship fails,the owner may lose whatever was invested in the business,but the owner's personal assets are not at risk.

Correct Answer
verified

Jocelyn belongs to food a co-operative in her community.As a member,she can expect to have a vote in the election of the co-operative's board of directors.

Correct Answer
verified

The__________ is usually the easiest form of business to start and end.

Correct Answer
verified

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

Correct Answer
verified

The board of directors for a corporation is elected by its:

Correct Answer
verified

Les is a franchisee in the Far Horizons Travel Agency franchise.As a franchisee,Les is guaranteed the right to retain all of his franchise's profits.

Correct Answer
verified

Which of the following statements about buying a franchise is most accurate?

Correct Answer
verified

It is not unusual for members of co-operatives to work for and help manage their co-operative.

Correct Answer
verified

Today,franchising accounts for nearly 40 percent of the national retail sales in Canada.

Correct Answer
verified

An evaluation of franchising would conclude that this type of arrangement:

Correct Answer
verified

Compared to a sole proprietorship,which of the following is considered an advantage of a general partnership?

Correct Answer
verified

Is it easy to start or end your own business? i.e.a sole proprietorship.

Correct Answer
verified
All you have to do to start your own bus...
View Answer

The corporation is the most common form of business ownership.

Correct Answer
verified

Correct Answer
verified

One disadvantage of________is the initial cost of starting this form of business organization.

Correct Answer
verified

Home-based franchisees feel less isolated than who?

Correct Answer
verified

In a limited liability partnership,each partner's risk of losing personal assets is:

Correct Answer
verified

The franchisee often must pay the franchisor a share of profits or a percentage commission on sales known as a royalty.

Correct Answer
verified

In a general partnership,all active partners are entitled to an equal share of the firm's profits.

Correct Answer
verified

A private corporation can issue stock to a child.

Correct Answer
verified

Exam 6: Forms of Business Ownership

If a sole proprietorship fails,the owner may lose whatever was invested in the business,but the owner's personal assets are not at risk.

Correct AnswerverifiedShow Answer

Jocelyn belongs to food a co-operative in her community.As a member,she can expect to have a vote in the election of the co-operative's board of directors.

Correct AnswerverifiedShow Answer

The__________ is usually the easiest form of business to start and end.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The board of directors for a corporation is elected by its:

Correct AnswerverifiedShow Answer

Les is a franchisee in the Far Horizons Travel Agency franchise.As a franchisee,Les is guaranteed the right to retain all of his franchise's profits.

Correct AnswerverifiedShow Answer

Which of the following statements about buying a franchise is most accurate?

Correct AnswerverifiedShow Answer

It is not unusual for members of co-operatives to work for and help manage their co-operative.

Correct AnswerverifiedShow Answer

Today,franchising accounts for nearly 40 percent of the national retail sales in Canada.

Correct AnswerverifiedShow Answer

An evaluation of franchising would conclude that this type of arrangement:

Correct AnswerverifiedShow Answer

Compared to a sole proprietorship,which of the following is considered an advantage of a general partnership?

Correct AnswerverifiedShow Answer

Is it easy to start or end your own business? i.e.a sole proprietorship.

Correct AnswerverifiedAll you have to do to start your own bus...View AnswerShow Answer

The corporation is the most common form of business ownership.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

One disadvantage of________is the initial cost of starting this form of business organization.

Correct AnswerverifiedShow Answer

Home-based franchisees feel less isolated than who?

Correct AnswerverifiedShow Answer

In a limited liability partnership,each partner's risk of losing personal assets is:

Correct AnswerverifiedShow Answer

The franchisee often must pay the franchisor a share of profits or a percentage commission on sales known as a royalty.

Correct AnswerverifiedShow Answer

In a general partnership,all active partners are entitled to an equal share of the firm's profits.

Correct AnswerverifiedShow Answer

A private corporation can issue stock to a child.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
All you have to do to start your own bus...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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