Question 1

For two years after a partner dissociates from a continuing partnership,the partnership may be bound by the acts of the dissociated partner.

Accepted Answer

A) True 
 B)False

Question 2

On dissolution,the creditors of the individual partners can make claims on the partnership's assets.

Accepted Answer

A) True 
 B)False

Question 3

Kim and Lyle are partners in K&L Sales,which exports technical equipment.If Congress declares that the equipment can no longer be exported,K&L​

Accepted Answer

A)  can continue its business for one twelve-month period.
B)  can continue its business indefinitely.
C)  dissolves immediately unless the partners change its business.
D)  is immediately subject to criminal prosecution and penalties.

Question 4

Made in the USA Clothing Inc.gives notice to Neely that it is terminating their franchise arrangement.Winding up the business requires​

Accepted Answer

A)  a new franchise agreement.
B)  nothing more than closing immediately.
C)  Neely's death,disability,or insolvency.
D)  the return of the franchisor's property.

Question 5

Mucho Tacos,Inc. ,sells franchises.Mucho Tacos imposes on its franchisees standards of operation and personnel training methods.What is the potential pitfall to Mucho Tacos if it exercises too much control over its franchisees?​

Accepted Answer

A provision in a franchise agreement per...

Question 6

A partner always has the power to dissociate from the partnership.

Accepted Answer

A) True 
 B)False

Question 7

Kay and Linda decide to do business as Marketing & Promotion.To be a partnership,this association can result from an agreement that is​

Accepted Answer

A)  express,but not implied.
B)  implied,but not express.
C)  oral,written,or implied by conduct.
D)  written,but not oral or implied.

Question 8

The laws governing franchising are primarily designed to protect franchisors from dishonest franchisees.

Accepted Answer

A) True 
 B)False

Question 9

The intent to associate is irrelevant in terms of the elements of a partnership.

Accepted Answer

A) True 
 B)False

Question 10

The franchise agreement may specify whether the premises for the business must be leased or purchased outright.

Accepted Answer

A) True 
 B)False

Question 11

Pay-Mor Convenience Stores,Inc. ,is a franchisor.Randy operates a Pay-Mor franchise.Sam is one of Randy's employees.As a franchisor,if Pay-Mor controls the day-to-day operations of the business to a significant degree,it may be liable for tortious acts by​

Accepted Answer

A)  no one.
B)  any person on the franchise premises.
C)  only persons with legitimate reasons to be on the franchise premises.
D)  Pay-Mor,Randy,or Sam.

Question 12

Faye is interested in buying a franchise from Gas n' Snax Stores Inc.This transaction,like other franchise deals,is regulated to protect

Accepted Answer

A)  certain types of anticompetitive agreements.
B)  franchisors from dishonest prospective franchisees.
C)  prospective franchisees from dishonest franchisors.
D)  the government's power to restrict freedom of contract.

Question 13

Bill sells Corner Deli,a sole proprietorship,to Debra.This is​

Accepted Answer

A)  a franchise.
B)  not a transfer of ownership without the other owners' approval.
C)  not a transfer of ownership-a sole proprietorship cannot be transferred.
D)  a transfer of the ownership of the business.

Question 14

Withdrawal from a partnership before the end of its express term constitutes a breach of the partnership agreement.

Accepted Answer

A) True 
 B)False

Question 15

A partner has a duty to devote time,skill and energy on behalf of the partnership business.

Accepted Answer

A) True 
 B)False

Question 16

State regulation of franchising is often aimed at protecting franchisees from unfair practices.

Accepted Answer

A) True 
 B)False

Question 17

A sole proprietorship offers less flexibility than does a partnership or a corporation.

Accepted Answer

A) True 
 B)False

Question 18

The law considers all new businesses to be sole proprietorships regardless of the number of owners.

Accepted Answer

A) True 
 B)False

Question 19

Big Sandwiches LLC wants to present information in "disclosure documents" via the Internet to prospective franchisees.Among other legal requirements with which the franchisor must comply,prospective franchisees must​

Accepted Answer

A)  agree to settle any lawsuits that may arise over the documents.
B)  be able to download or save all electronic documents.
C)  provide e-mail addresses for the franchisor to verify users' authenticity.
D)  register with the Federal Trade Commission via the franchisor's Web site.

Question 20

Fact Pattern 16-2
Bryn,Cornell,and Duke are general partners in Equity Lending,a consumer credit,mortgage,and investment firm.Their agreement states that it is a breach of the agreement for any partner to assign his or her interest to a creditor without the consent of the other partners.
-Refer to Fact Pattern 16-2.Bryn,Cornell,and Duke decide to admit Giselle as a new partner in Equity Lending.Giselle's liability for partnership debts incurred before her admission is​

Accepted Answer

A)  limited to her capital contribution to the firm.
B)  limited to her personal assets.
C)  nothing.
D)  unlimited.

Exam 16: Small Businesses and Franchises

Withdrawal from a partnership before the end of its express term constitutes a breach of the partnership agreement.

Correct Answer
verified

The intent to associate is irrelevant in terms of the elements of a partnership.

Correct Answer
verified

Kay and Linda decide to do business as Marketing & Promotion.To be a partnership,this association can result from an agreement that is

Correct Answer
verified

The law considers all new businesses to be sole proprietorships regardless of the number of owners.

Correct Answer
verified

Faye is interested in buying a franchise from Gas n' Snax Stores Inc.This transaction,like other franchise deals,is regulated to protect

Correct Answer
verified

A partner always has the power to dissociate from the partnership.

Correct Answer
verified

Big Sandwiches LLC wants to present information in "disclosure documents" via the Internet to prospective franchisees.Among other legal requirements with which the franchisor must comply,prospective franchisees must

Correct Answer
verified

Correct Answer
verified

State regulation of franchising is often aimed at protecting franchisees from unfair practices.

Correct Answer
verified

The laws governing franchising are primarily designed to protect franchisors from dishonest franchisees.

Correct Answer
verified

For two years after a partner dissociates from a continuing partnership,the partnership may be bound by the acts of the dissociated partner.

Correct Answer
verified

Kim and Lyle are partners in K&L Sales,which exports technical equipment.If Congress declares that the equipment can no longer be exported,K&L

Correct Answer
verified

On dissolution,the creditors of the individual partners can make claims on the partnership's assets.

Correct Answer
verified

Made in the USA Clothing Inc.gives notice to Neely that it is terminating their franchise arrangement.Winding up the business requires

Correct Answer
verified

Bill sells Corner Deli,a sole proprietorship,to Debra.This is

Correct Answer
verified

The franchise agreement may specify whether the premises for the business must be leased or purchased outright.

Correct Answer
verified

A partner has a duty to devote time,skill and energy on behalf of the partnership business.

Correct Answer
verified

A sole proprietorship offers less flexibility than does a partnership or a corporation.

Correct Answer
verified

Pay-Mor Convenience Stores,Inc. ,is a franchisor.Randy operates a Pay-Mor franchise.Sam is one of Randy's employees.As a franchisor,if Pay-Mor controls the day-to-day operations of the business to a significant degree,it may be liable for tortious acts by

Correct Answer
verified

Mucho Tacos,Inc. ,sells franchises.Mucho Tacos imposes on its franchisees standards of operation and personnel training methods.What is the potential pitfall to Mucho Tacos if it exercises too much control over its franchisees?

Correct Answer
verified
A provision in a franchise agreement per...
View Answer

Exam 16: Small Businesses and Franchises

Withdrawal from a partnership before the end of its express term constitutes a breach of the partnership agreement.

Correct AnswerverifiedShow Answer

The intent to associate is irrelevant in terms of the elements of a partnership.

Correct AnswerverifiedShow Answer

Kay and Linda decide to do business as Marketing & Promotion.To be a partnership,this association can result from an agreement that is​

Correct AnswerverifiedShow Answer

The law considers all new businesses to be sole proprietorships regardless of the number of owners.

Correct AnswerverifiedShow Answer

Faye is interested in buying a franchise from Gas n' Snax Stores Inc.This transaction,like other franchise deals,is regulated to protect

Correct AnswerverifiedShow Answer

A partner always has the power to dissociate from the partnership.

Correct AnswerverifiedShow Answer

Big Sandwiches LLC wants to present information in "disclosure documents" via the Internet to prospective franchisees.Among other legal requirements with which the franchisor must comply,prospective franchisees must​

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

State regulation of franchising is often aimed at protecting franchisees from unfair practices.

Correct AnswerverifiedShow Answer

The laws governing franchising are primarily designed to protect franchisors from dishonest franchisees.

Correct AnswerverifiedShow Answer

For two years after a partner dissociates from a continuing partnership,the partnership may be bound by the acts of the dissociated partner.

Correct AnswerverifiedShow Answer

Kim and Lyle are partners in K&L Sales,which exports technical equipment.If Congress declares that the equipment can no longer be exported,K&L​

Correct AnswerverifiedShow Answer

On dissolution,the creditors of the individual partners can make claims on the partnership's assets.

Correct AnswerverifiedShow Answer

Made in the USA Clothing Inc.gives notice to Neely that it is terminating their franchise arrangement.Winding up the business requires​

Correct AnswerverifiedShow Answer

Bill sells Corner Deli,a sole proprietorship,to Debra.This is​

Correct AnswerverifiedShow Answer

The franchise agreement may specify whether the premises for the business must be leased or purchased outright.

Correct AnswerverifiedShow Answer

A partner has a duty to devote time,skill and energy on behalf of the partnership business.

Correct AnswerverifiedShow Answer

A sole proprietorship offers less flexibility than does a partnership or a corporation.

Correct AnswerverifiedShow Answer

Pay-Mor Convenience Stores,Inc. ,is a franchisor.Randy operates a Pay-Mor franchise.Sam is one of Randy's employees.As a franchisor,if Pay-Mor controls the day-to-day operations of the business to a significant degree,it may be liable for tortious acts by​

Correct AnswerverifiedShow Answer

Mucho Tacos,Inc. ,sells franchises.Mucho Tacos imposes on its franchisees standards of operation and personnel training methods.What is the potential pitfall to Mucho Tacos if it exercises too much control over its franchisees?​

Correct AnswerverifiedA provision in a franchise agreement per...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Kay and Linda decide to do business as Marketing & Promotion.To be a partnership,this association can result from an agreement that is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Big Sandwiches LLC wants to present information in "disclosure documents" via the Internet to prospective franchisees.Among other legal requirements with which the franchisor must comply,prospective franchisees must

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Kim and Lyle are partners in K&L Sales,which exports technical equipment.If Congress declares that the equipment can no longer be exported,K&L

Correct Answer
verified

Correct Answer
verified

Made in the USA Clothing Inc.gives notice to Neely that it is terminating their franchise arrangement.Winding up the business requires

Correct Answer
verified

Bill sells Corner Deli,a sole proprietorship,to Debra.This is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Pay-Mor Convenience Stores,Inc. ,is a franchisor.Randy operates a Pay-Mor franchise.Sam is one of Randy's employees.As a franchisor,if Pay-Mor controls the day-to-day operations of the business to a significant degree,it may be liable for tortious acts by

Correct Answer
verified

Mucho Tacos,Inc. ,sells franchises.Mucho Tacos imposes on its franchisees standards of operation and personnel training methods.What is the potential pitfall to Mucho Tacos if it exercises too much control over its franchisees?

Correct Answer
verified
A provision in a franchise agreement per...
View Answer