Question 1

The stockholders in a corporation elect a board of directors to oversee the company's major policy issues.

Accepted Answer

A) True 
 B)False

Question 2

Corporations are subject to double taxation.

Accepted Answer

A) True 
 B)False

Question 3

Two of Rolanda's friends have approached her to see if she would like to join them in starting a new business.Rolanda is willing to invest money in the business and share in its profits,but she has no desire to be involved in the day-to-day management of the company.She is also very nervous about the risk of losing her personal assets.Rolanda's preferences suggest that she would like to see the business operated as a general partnership.

Accepted Answer

A) True 
 B)False

Question 4

Co-ops distribute their profits to members as a reduction in members' costs.These profits are non-taxable.

Accepted Answer

A) True 
 B)False

Question 5

There are advantages and disadvantages to all forms of business ownership.

Accepted Answer

A) True 
 B)False

Question 6

Homer and Marge have decided to open a floral design shop,which they intend to run as co-owners.Both intend to take an active role in the management of their new business,and each will accept unlimited liability.Homer and Marge are planning to operate a:

Accepted Answer

A) general partnership. 
B) limited partnership. 
C) co-operative. 
D) joint venture. 
A) general partnership. 
B) limited partnership. 
C) co-operative. 
D) joint venture.

Question 7

Martyn is a limited partner in Gettout & Associates.Mary Gettout,one of the senior general partners in the company,must temporarily leave the company to attend to some personal matters.Mary has asked Martyn to temporarily perform her managerial duties while she is gone.As a limited partner,Martyn:

Accepted Answer

A) can make managerial decisions as long as they do not involve the payment of money. 
B) can fill in as a manager whenever necessary,as long as it is for only a limited time. 
C) can manage the firm as long as he gets approval from the company's other general partners. 
D) cannot participate in the management of the partnership. 
A) can make managerial decisions as long as they do not involve the payment of money. 
B) can fill in as a manager whenever necessary,as long as it is for only a limited time. 
C) can manage the firm as long as he gets approval from the company's other general partners. 
D) cannot participate in the management of the partnership.

Question 8

Dr.Wright is interested in incorporating as an individual.While this is legally possible,there are really no advantages to doing so.

Accepted Answer

A) True 
 B)False

Question 9

In a general partnership,all owners share in both management of the business and in the assumption of liability for the firm's debts.

Accepted Answer

A) True 
 B)False

Question 10

Co-operatives differ from other businesses in several ways except:

Accepted Answer

A) allocation of profits 
B) purpose 
C) control structure 
D) having a long history and proven track record 
A) allocation of profits 
B) purpose 
C) control structure 
D) having a long history and proven track record

Question 11

Mary is interested in becoming a franchisee in Katie's Grill,a very successful fast food chain from the Canadian West.Which of the following problems is Mary most likely to encounter if she agrees to become a franchisee?

Accepted Answer

A) Lack of managerial assistance. 
B) High initial costs and fees. 
C) Lack of financing. 
D) Poor name recognition and visibility. 
A) Lack of managerial assistance. 
B) High initial costs and fees. 
C) Lack of financing. 
D) Poor name recognition and visibility.

Question 12

Ram is a stockholder in Endrun Investments,which is organized as a corporation.Endrun recently lost a major court decision and will probably be forced into bankruptcy.In fact,the damages awarded are so great that,even if all of its assets are sold and the proceeds are used to pay its debts,Endrun is likely to still owe money to its creditors.If Endrun does go bankrupt,Ram and the other stockholders will:

Accepted Answer

A) be entitled to full reimbursement of any investment losses. 
B) be personally responsible for all remaining debts. 
C) automatically qualify for federal reimbursement for any losses suffered by the firm. 
D) lose their investment but nothing else. 
A) be entitled to full reimbursement of any investment losses. 
B) be personally responsible for all remaining debts. 
C) automatically qualify for federal reimbursement for any losses suffered by the firm. 
D) lose their investment but nothing else.

Question 13

Connie is a general partner in a retail cookie store.Her personal assets are protected from the debts of the business.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

A partner who invests money in a business,but does not take an active role in management or assume unlimited liability for the firm's losses is known as a(n):

Accepted Answer

A) partial partner. 
B) limited partner. 
C) corporate partner. 
D) implied partner. 
A) partial partner. 
B) limited partner. 
C) corporate partner. 
D) implied partner.

Question 16

The process and policies that determine how an organization interacts with its shareholders is known as corporate governance.

Accepted Answer

A) True 
 B)False

Question 17

Marie recently purchased 100 shares of stock in the McBun Development Corporation.Marie has become a(n)__________of McBun Development.

Accepted Answer

A) manager 
B) partner 
C) creditor 
D) owner 
A) manager 
B) partner 
C) creditor 
D) owner

Question 18

Any debts or damages incurred by a firm organized as a sole proprietorship are:

Accepted Answer

A) limited to the amount the owner has invested in the firm. 
B) the sole responsibility of the owner. 
C) normally covered by liability insurance. 
D) paid for out of a reserve contingency fund that sole proprietors are required by law to set up. 
A) limited to the amount the owner has invested in the firm. 
B) the sole responsibility of the owner. 
C) normally covered by liability insurance. 
D) paid for out of a reserve contingency fund that sole proprietors are required by law to set up.

Question 19

List some of the economic sectors where you find co-operatives in Canada.

Accepted Answer

Some of the largest sectors are:
-Financ

Question 20

One reason franchises have become so popular is that this arrangement provides the franchisee with:

Accepted Answer

A) limited liability. 
B) the right to retain all profits earned by their franchise. 
C) a low cost way to start a business. 
D) a nationally recognized name and product. 
A) limited liability. 
B) the right to retain all profits earned by their franchise. 
C) a low cost way to start a business. 
D) a nationally recognized name and product.

The stockholders in a corporation elect a board of directors to oversee the company's major policy issues.

Corporations are subject to double taxation.

Co-ops distribute their profits to members as a reduction in members' costs.These profits are non-taxable.

There are advantages and disadvantages to all forms of business ownership.

Homer and Marge have decided to open a floral design shop,which they intend to run as co-owners.Both intend to take an active role in the management of their new business,and each will accept unlimited liability.Homer and Marge are planning to operate a:

Martyn is a limited partner in Gettout & Associates.Mary Gettout,one of the senior general partners in the company,must temporarily leave the company to attend to some personal matters.Mary has asked Martyn to temporarily perform her managerial duties while she is gone.As a limited partner,Martyn:

Dr.Wright is interested in incorporating as an individual.While this is legally possible,there are really no advantages to doing so.

In a general partnership,all owners share in both management of the business and in the assumption of liability for the firm's debts.

Co-operatives differ from other businesses in several ways except:

Mary is interested in becoming a franchisee in Katie's Grill,a very successful fast food chain from the Canadian West.Which of the following problems is Mary most likely to encounter if she agrees to become a franchisee?

Connie is a general partner in a retail cookie store.Her personal assets are protected from the debts of the business.

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

A partner who invests money in a business,but does not take an active role in management or assume unlimited liability for the firm's losses is known as a(n):

The process and policies that determine how an organization interacts with its shareholders is known as corporate governance.

Marie recently purchased 100 shares of stock in the McBun Development Corporation.Marie has become a(n)__________of McBun Development.

Any debts or damages incurred by a firm organized as a sole proprietorship are:

List some of the economic sectors where you find co-operatives in Canada.

One reason franchises have become so popular is that this arrangement provides the franchisee with:

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

Exam 6: Forms of Business Ownership

The stockholders in a corporation elect a board of directors to oversee the company's major policy issues.

Corporations are subject to double taxation.

Co-ops distribute their profits to members as a reduction in members' costs.These profits are non-taxable.

There are advantages and disadvantages to all forms of business ownership.

Homer and Marge have decided to open a floral design shop,which they intend to run as co-owners.Both intend to take an active role in the management of their new business,and each will accept unlimited liability.Homer and Marge are planning to operate a:

Martyn is a limited partner in Gettout & Associates.Mary Gettout,one of the senior general partners in the company,must temporarily leave the company to attend to some personal matters.Mary has asked Martyn to temporarily perform her managerial duties while she is gone.As a limited partner,Martyn:

Dr.Wright is interested in incorporating as an individual.While this is legally possible,there are really no advantages to doing so.

In a general partnership,all owners share in both management of the business and in the assumption of liability for the firm's debts.

Co-operatives differ from other businesses in several ways except:

Mary is interested in becoming a franchisee in Katie's Grill,a very successful fast food chain from the Canadian West.Which of the following problems is Mary most likely to encounter if she agrees to become a franchisee?

Connie is a general partner in a retail cookie store.Her personal assets are protected from the debts of the business.

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

A partner who invests money in a business,but does not take an active role in management or assume unlimited liability for the firm's losses is known as a(n):

The process and policies that determine how an organization interacts with its shareholders is known as corporate governance.

Marie recently purchased 100 shares of stock in the McBun Development Corporation.Marie has become a(n)__________of McBun Development.

Any debts or damages incurred by a firm organized as a sole proprietorship are:

List some of the economic sectors where you find co-operatives in Canada.

One reason franchises have become so popular is that this arrangement provides the franchisee with:

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