Question 1

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. 
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 2

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. 
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 3

Home-based franchisees feel less isolated than who?

Accepted Answer

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

Question 4

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 5

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 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Question 9

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 10

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

Question 11

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 12

A private corporation can issue stock to a child.

Accepted Answer

A) True 
 B)False

Question 13

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 14

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 15

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 16

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

Accepted Answer

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

Question 17

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 18

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. 
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 19

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. 
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 20

The corporation is the most common form of business ownership.

Accepted Answer

A) True 
 B)False

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

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

Home-based franchisees feel less isolated than who?

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

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

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.

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

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

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.

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

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

A private corporation can issue stock to a child.

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.

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

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

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

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

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

The corporation is the most common form of business ownership.

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

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

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

Home-based franchisees feel less isolated than who?

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

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

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.

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

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

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.

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

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

A private corporation can issue stock to a child.

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.

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

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

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

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

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

The corporation is the most common form of business ownership.

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