Question 1

Which form of business ownership has no risks?

Accepted Answer

A) corporations 
B) sole proprietorships 
C) co-operatives 
D) all forms have risks 
A) corporations 
B) sole proprietorships 
C) co-operatives 
D) all forms have risks D

Question 2

Franchising is popular in Canada,but legal barriers have limited its popularity in foreign countries.

Accepted Answer

A) True 
 B)False  False

Question 3

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

Accepted Answer

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

Question 4

In a typical franchise agreement,the franchisor pays the franchisee a fee to manage its company,and the two of them split the profits based on the percentages established in the agreement.

Accepted Answer

A) True 
 B)False

Question 5

One of the major disadvantages of a partnership is that profits must be divided according to very specific legal guidelines.

Accepted Answer

A) True 
 B)False

Question 6

The is the most common form of business ownership.

Accepted Answer

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

Question 7

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

Accepted Answer

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

Question 8

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 9

Franchisors give franchisees the right to use their name and product,but franchisees must obtain all financing advice and develop all marketing strategies on their own.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following operations is not an example of a franchise?

Accepted Answer

A) Quiznos Sub 
B) Swiss Chalet 
C) Home Hardware 
D) Loblaws 
A) Quiznos Sub 
B) Swiss Chalet 
C) Home Hardware 
D) Loblaws

Question 11

A significant disadvantage of owning a sole proprietorship is the:

Accepted Answer

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

Question 12

A distinguishing feature of a co-operative is that it:

Accepted Answer

A) is owned and operated by the people who use it. 
B) is only intended to operate for a limited period of time. 
C) maintains a distinct separation between ownership and management. 
D) can have no more than 75 owners,all of whom must be citizens of Canada. 
A) is owned and operated by the people who use it. 
B) is only intended to operate for a limited period of time. 
C) maintains a distinct separation between ownership and management. 
D) can have no more than 75 owners,all of whom must be citizens of Canada.

Question 13

Compared to partnerships and sole proprietorships,a major  advantage  of a public corporation as a form of business ownership is that it:

Accepted Answer

A) qualifies for simplified tax treatment. 
B) is easier and less expensive to form. 
C) creates unlimited liability of owners. 
D) has the ability to raise more money. 
A) qualifies for simplified tax treatment. 
B) is easier and less expensive to form. 
C) creates unlimited liability of owners. 
D) has the ability to raise more money.

Question 14

Dev is an owner (partner)who has unlimited liability and is active in managing a law firm.Dev is an example of a:

Accepted Answer

A) silent partner. 
B) general partner. 
C) limited partner. 
D) none of the above. 
A) silent partner. 
B) general partner. 
C) limited partner. 
D) none of the above.

Question 15

The form of business ownership that usually requires the most detailed record keeping is the:

Accepted Answer

A) limited partnership. 
B) sole proprietorship. 
C) partnership. 
D) corporation. 
A) limited partnership. 
B) sole proprietorship. 
C) partnership. 
D) corporation.

Question 16

One advantage of corporations is that the initial cost of setting them up is usually lower than for other forms of ownership.

Accepted Answer

A) True 
 B)False

Question 17

A general partner can take an active role in the management of the business.

Accepted Answer

A) True 
 B)False

Question 18

Ana has always disliked the notion that the customers,managers,and workers of a business are separate individuals with competing goals.She has joined with many other people in her community who share this view to become a member,and part owner,of a child care centre.Ana and the other members operate the centre for their own benefit,and each is expected to work at the centre at least 12 hours each month.The type of organization Ana belongs to is known as a joint venture.

Accepted Answer

A) True 
 B)False

Question 19

Daggie's Sandwiches,Inc. ,sells the rights to use its name and sell its sandwiches in a given market area to aspiring business people who are willing to pay agreed upon fees and meet certain contractual terms.Daggie's:

Accepted Answer

A) creates private subsidiary companies. 
B) is offering investors the opportunity to form limited partnerships. 
C) is a franchisor. 
D) offers a tax-free investment potential. 
A) creates private subsidiary companies. 
B) is offering investors the opportunity to form limited partnerships. 
C) is a franchisor. 
D) offers a tax-free investment potential.

Question 20

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

Accepted Answer

A) True 
 B)False

Which form of business ownership has no risks?

Franchising is popular in Canada,but legal barriers have limited its popularity in foreign countries.

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

In a typical franchise agreement,the franchisor pays the franchisee a fee to manage its company,and the two of them split the profits based on the percentages established in the agreement.

One of the major disadvantages of a partnership is that profits must be divided according to very specific legal guidelines.

The is the most common form of business ownership.

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

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

Franchisors give franchisees the right to use their name and product,but franchisees must obtain all financing advice and develop all marketing strategies on their own.

Which of the following operations is not an example of a franchise?

A significant disadvantage of owning a sole proprietorship is the:

A distinguishing feature of a co-operative is that it:

Compared to partnerships and sole proprietorships,a major advantage of a public corporation as a form of business ownership is that it:

Dev is an owner (partner)who has unlimited liability and is active in managing a law firm.Dev is an example of a:

The form of business ownership that usually requires the most detailed record keeping is the:

One advantage of corporations is that the initial cost of setting them up is usually lower than for other forms of ownership.

A general partner can take an active role in the management of the business.

Daggie's Sandwiches,Inc. ,sells the rights to use its name and sell its sandwiches in a given market area to aspiring business people who are willing to pay agreed upon fees and meet certain contractual terms.Daggie's:

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

The Dynamic Business Environment

How Economic Issues Affect Business

Competing in Global Markets

The Role of Government in Business Appendix a Working Within the Legal Environment of Business

Ethics and Social Responsibility

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemdashmanagement Issues and Relations

Marketing: Helping Buyers Buy

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

Understanding Accounting and Financial Information

Financial Management Appendix C Managing Risk

The Financial Services Industry in Canada

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Exam 6: Forms of Business Ownership

Which form of business ownership has no risks?

Franchising is popular in Canada,but legal barriers have limited its popularity in foreign countries.

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

In a typical franchise agreement,the franchisor pays the franchisee a fee to manage its company,and the two of them split the profits based on the percentages established in the agreement.

One of the major disadvantages of a partnership is that profits must be divided according to very specific legal guidelines.

The is the most common form of business ownership.

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

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

Franchisors give franchisees the right to use their name and product,but franchisees must obtain all financing advice and develop all marketing strategies on their own.

Which of the following operations is not an example of a franchise?

A significant disadvantage of owning a sole proprietorship is the:

A distinguishing feature of a co-operative is that it:

Compared to partnerships and sole proprietorships,a major advantage of a public corporation as a form of business ownership is that it:

Dev is an owner (partner)who has unlimited liability and is active in managing a law firm.Dev is an example of a:

The form of business ownership that usually requires the most detailed record keeping is the:

One advantage of corporations is that the initial cost of setting them up is usually lower than for other forms of ownership.

A general partner can take an active role in the management of the business.

Daggie's Sandwiches,Inc. ,sells the rights to use its name and sell its sandwiches in a given market area to aspiring business people who are willing to pay agreed upon fees and meet certain contractual terms.Daggie's:

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

The Dynamic Business Environment

How Economic Issues Affect Business

Competing in Global Markets

The Role of Government in Business Appendix a Working Within the Legal Environment of Business

Ethics and Social Responsibility

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemdashmanagement Issues and Relations

Marketing: Helping Buyers Buy

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

Understanding Accounting and Financial Information

Financial Management Appendix C Managing Risk

The Financial Services Industry in Canada

Filters