Question 1

A limited partnership refers to a partnership set up for a temporary purpose,such as a real estate development project.

Accepted Answer

A) True 
 B)False

Question 2

A co-operative consists of people with similar needs who pool their resources for mutual gain.

Accepted Answer

A) True 
 B)False

Question 3

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

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The ___________ is the most common form of business ownership.

Accepted Answer

A) partnership 
B) corporation 
C) joint venture 
D) sole proprietorship 
A) partnership 
B) corporation 
C) joint venture 
D) sole proprietorship

Question 6

To many businesspeople,one of the major attractions of a sole proprietorship is:

Accepted Answer

A) the ability to obtain additional financial resources. 
B) the protection of limited liability. 
C) an unlimited lifespan. 
D) the chance to be their own boss. 
A) the ability to obtain additional financial resources. 
B) the protection of limited liability. 
C) an unlimited lifespan. 
D) the chance to be their own boss.

Question 7

The form of business ownership that is best suited to raising large amounts of money for expansion is the:

Accepted Answer

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

Question 8

A ____________ is the share of profits or percentage of sales a franchisee pays to a franchisor.

Accepted Answer

A) royalty 
B) dividend 
C) premium 
D) co-pay 
A) royalty 
B) dividend 
C) premium 
D) co-pay

Question 9

A recent study showed that partnerships are more likely to fail than sole proprietorships.

Accepted Answer

A) True 
 B)False

Question 10

A significant disadvantage of owning a sole proprietorship is the:

Accepted Answer

A) possibility of limited liability. 
B) heavy tax liability that must be assumed. 
C) overwhelming time commitment often required of the owner. 
D) lack of incentives to motivate the owner. 
A) possibility of limited liability. 
B) heavy tax liability that must be assumed. 
C) overwhelming time commitment often required of the owner. 
D) lack of incentives to motivate the owner.

Question 11

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

Accepted Answer

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

Question 12

Starting a new business as a sole proprietorship:

Accepted Answer

A) requires retaining the services of an attorney. 
B) is simple,but the proprietorship fee is very expensive in some provinces. 
C) is usually simpler and less expensive than starting other forms of ownership. 
D) is very similar to starting a business as a corporation. 
A) requires retaining the services of an attorney. 
B) is simple,but the proprietorship fee is very expensive in some provinces. 
C) is usually simpler and less expensive than starting other forms of ownership. 
D) is very similar to starting a business as a corporation.

Question 13

Franchisees must follow more rules,regulations,and procedures than if they operated independently owned businesses.

Accepted Answer

A) True 
 B)False

Question 14

The group farthest removed from the daily operations of a corporation are:

Accepted Answer

A) owners 
B) managers 
C) officers 
D) directors 
A) owners 
B) managers 
C) officers 
D) directors

Question 15

A ___________ is an organization that is owned and controlled by the people who use it-producers,consumers and workers with similar needs who pool their resources for mutual gain.

Accepted Answer

A) corporation 
B) limited partnership 
C) mutual fund 
D) co-operative 
A) corporation 
B) limited partnership 
C) mutual fund 
D) co-operative

Question 16

A horizontal merger refers to a merger between two companies that are in entirely different markets.

Accepted Answer

A) True 
 B)False

Question 17

Hair's to You,a nationwide network of hair styling salons,recently approached Flair All,Inc.,a maker of hair care products,about the potential for a merger.Many of Flair All's products are used by professional hair stylists,and Hair's to You believes that such a merger would ensure a supply of good quality products for use in its salons.If the firms do merge,it would be an example of a:

Accepted Answer

A) conglomerate merger. 
B) vertical merger. 
C) horizontal merger. 
D) diagonal merger. 
A) conglomerate merger. 
B) vertical merger. 
C) horizontal merger. 
D) diagonal merger.

Question 18

Franchised businesses in Canada account for 10% of all retail sales,and employ about 200,000 people.

Accepted Answer

A) True 
 B)False

Question 19

Dann is convinced that he has a great idea for a new business.Unfortunately,the type of business he wants to start would require a fairly high initial investment and Dann has a poor credit rating and very little personal wealth.Dann would be unlikely to find success if he organized his business as a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 20

Stockholders in a corporation must accept unlimited liability for the corporation's debts.

Accepted Answer

A) True 
 B)False

A limited partnership refers to a partnership set up for a temporary purpose,such as a real estate development project.

A co-operative consists of people with similar needs who pool their resources for mutual gain.

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

The ___________ is the most common form of business ownership.

To many businesspeople,one of the major attractions of a sole proprietorship is:

The form of business ownership that is best suited to raising large amounts of money for expansion is the:

A ____________ is the share of profits or percentage of sales a franchisee pays to a franchisor.

A recent study showed that partnerships are more likely to fail than sole proprietorships.

A significant disadvantage of owning a sole proprietorship is the:

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

Starting a new business as a sole proprietorship:

Franchisees must follow more rules,regulations,and procedures than if they operated independently owned businesses.

The group farthest removed from the daily operations of a corporation are:

A ___________ is an organization that is owned and controlled by the people who use it-producers,consumers and workers with similar needs who pool their resources for mutual gain.

A horizontal merger refers to a merger between two companies that are in entirely different markets.

Franchised businesses in Canada account for 10% of all retail sales,and employ about 200,000 people.

Stockholders in a corporation must accept unlimited liability for the corporation's debts.

Taking Risks and Making Profits Within the Dynamic Business Environment

How Economic Issues Affect Business

Competing in Global Markets

The Role of Government in Business

Ethics and Social Responsibility

Entrepreneurship and Starting a Small Business

Management and Leadership

Adapting Organizations to Todays Markets

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Understanding Employeemanagement Issues and Relations

Marketing: Building Customer and Stakeholder Relationships

Managing the Marketing Mix: Product, Price, Place, and Promotion

Understanding Accounting and Financial Information

Financial Management

The Financial Services Industry in Canada

Filters

Exam 6: Forms of Business Ownership

A limited partnership refers to a partnership set up for a temporary purpose,such as a real estate development project.

A co-operative consists of people with similar needs who pool their resources for mutual gain.

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

The ___________ is the most common form of business ownership.

To many businesspeople,one of the major attractions of a sole proprietorship is:

The form of business ownership that is best suited to raising large amounts of money for expansion is the:

A ____________ is the share of profits or percentage of sales a franchisee pays to a franchisor.

A recent study showed that partnerships are more likely to fail than sole proprietorships.

A significant disadvantage of owning a sole proprietorship is the:

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

Starting a new business as a sole proprietorship:

Franchisees must follow more rules,regulations,and procedures than if they operated independently owned businesses.

The group farthest removed from the daily operations of a corporation are:

A ___________ is an organization that is owned and controlled by the people who use it-producers,consumers and workers with similar needs who pool their resources for mutual gain.

A horizontal merger refers to a merger between two companies that are in entirely different markets.

Franchised businesses in Canada account for 10% of all retail sales,and employ about 200,000 people.

Stockholders in a corporation must accept unlimited liability for the corporation's debts.

Taking Risks and Making Profits Within the Dynamic Business Environment

How Economic Issues Affect Business

Competing in Global Markets

The Role of Government in Business

Ethics and Social Responsibility

Entrepreneurship and Starting a Small Business

Management and Leadership

Adapting Organizations to Todays Markets

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Understanding Employeemanagement Issues and Relations

Marketing: Building Customer and Stakeholder Relationships

Managing the Marketing Mix: Product, Price, Place, and Promotion

Understanding Accounting and Financial Information

Financial Management

The Financial Services Industry in Canada

Filters