Question 1

Which of the following people would be most interested in participating in a business organized as a co-operative?

Accepted Answer

A) Jeff wants to work for a government owned business because he believes government ownership ensures a more equitable distribution of income and wealth. 
B) Joe is intrigued by the idea of combining his time and resources with many other people to operate a business providing a good or service that they all will use. 
C) Joan wants to be an owner of a business and share in its profits,but has no desire to take an active role in managing the company or participating in its daily operations. 
D) Jennifer prefers to work for a charitable organization that emphasizes helping people who are less fortunate than her. 
A) Jeff wants to work for a government owned business because he believes government ownership ensures a more equitable distribution of income and wealth. 
B) Joe is intrigued by the idea of combining his time and resources with many other people to operate a business providing a good or service that they all will use. 
C) Joan wants to be an owner of a business and share in its profits,but has no desire to take an active role in managing the company or participating in its daily operations. 
D) Jennifer prefers to work for a charitable organization that emphasizes helping people who are less fortunate than her.

Question 2

The largest co-operative sector is the agricultural (farm)co-op.

Accepted Answer

A) True 
 B)False

Question 3

Marco is a franchisee with Daggies,a chain of sandwich shops.His business was doing well until several Daggies franchisees got in trouble and were forced to close their shops.Soon afterward,Marco's business deteriorated and he too was forced to close.

Accepted Answer

A) the coattail effect. 
B) management by exception. 
C) an economic shakeout at work. 
D) the law of diminishing returns. 
A) the coattail effect. 
B) management by exception. 
C) an economic shakeout at work. 
D) the law of diminishing returns.

Question 4

A general partner has unlimited liability for the debts of the partnership only if he or she personally approved the decisions that resulted in those debts.

Accepted Answer

A) True 
 B)False

Question 5

Partnerships have the largest share of business revenue in Canada.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The most popular global market for U.S.franchisors has been Canada.

Accepted Answer

A) True 
 B)False

Question 8

Leanne is a franchisee in a restaurant chain.Thanks mainly to her hard work and people skills,her individual outlet is doing quite well.However,she has noticed that several other franchisees in the same chain have let their businesses deteriorate,especially in terms of the quality of the food they offer.Leanne should be very concerned about this trend,since it eventually could affect her own business.

Accepted Answer

A) True 
 B)False

Question 9

Stockholders in a corporation normally exert a significant degree of control over the company's daily operations.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is an advantage of the corporate form of business when compared to sole proprietorships and partnerships?

Accepted Answer

A) simplified paperwork 
B) ease of formation 
C) limited liability of owners 
D) lower taxes 
A) simplified paperwork 
B) ease of formation 
C) limited liability of owners 
D) lower taxes

Question 11

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

Accepted Answer

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

Question 12

In a partnership,a(n)__________partner is an owner who is active in managing the company and has unlimited liability for claims against the firm.

Accepted Answer

A) unlimited 
B) general 
C) limited 
D) associate 
A) unlimited 
B) general 
C) limited 
D) associate

Question 13

The three major forms of business ownership in Canada are sole proprietorships,partnerships,and corporations.

Accepted Answer

A) True 
 B)False

Question 14

Sharon,Lois and Sam have just formed a business partnership.Under their arrangement,Sharon will actively manage the company and assume unlimited liability for the firm's debts.Sam and Lois will invest several thousand dollars of their money and will share in the profits,but will not actively manage the firm and will not have liability for losses beyond their initial investment.This describes a limited partnership.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements about partnerships is the most accurate?

Accepted Answer

A) A partnership is simply a corporation with fewer than 100 owners. 
B) Partnerships are taxed at the lowest corporate tax rate. 
C) A major drawback of a partnership is that it is difficult to terminate. 
D) A major advantage of a partnership is that it offers owners limited liability. 
A) A partnership is simply a corporation with fewer than 100 owners. 
B) Partnerships are taxed at the lowest corporate tax rate. 
C) A major drawback of a partnership is that it is difficult to terminate. 
D) A major advantage of a partnership is that it offers owners limited liability.

Question 16

Rhonda has agreed to invest $16,000 in a partnership with her sister and brother-in-law.Rhonda does not plan to work in the partnership,nor does she wish to risk any of her own wealth other than the $16,000 she invests,but she does intend to share in any profits earned by the partnership.Evidently,Rhonda will be a:

Accepted Answer

A) preferred stockholder. 
B) secondary partner. 
C) limited partner. 
D) restricted partner. 
A) preferred stockholder. 
B) secondary partner. 
C) limited partner. 
D) restricted partner.

Question 17

In a franchise arrangement,ownership of all of the individual stores or outlets remains in the hands of the franchisor.

Accepted Answer

A) True 
 B)False

Question 18

Dr.Driller is a dentist who is interested in incorporating as an individual.If he attempts to do so,Dr.Driller is likely to find that:

Accepted Answer

A) he may actually save on taxes. 
B) his business will be owned by a large number of stockholders with whom he must share his income. 
C) the procedures for an individual to incorporate are extremely complex. 
D) most provinces do not allow individuals to incorporate. 
A) he may actually save on taxes. 
B) his business will be owned by a large number of stockholders with whom he must share his income. 
C) the procedures for an individual to incorporate are extremely complex. 
D) most provinces do not allow individuals to incorporate.

Question 19

Which of the following is an advantage of a sole proprietorship?

Accepted Answer

A) longer survival 
B) no special taxes 
C) limited growth 
D) unlimited liability 
A) longer survival 
B) no special taxes 
C) limited growth 
D) unlimited liability

Question 20

One drawback of franchises is that they have a much higher failure rate than other types of business ventures.

Accepted Answer

A) True 
 B)False

Which of the following people would be most interested in participating in a business organized as a co-operative?

The largest co-operative sector is the agricultural (farm)co-op.

Marco is a franchisee with Daggies,a chain of sandwich shops.His business was doing well until several Daggies franchisees got in trouble and were forced to close their shops.Soon afterward,Marco's business deteriorated and he too was forced to close.

A general partner has unlimited liability for the debts of the partnership only if he or she personally approved the decisions that resulted in those debts.

Partnerships have the largest share of business revenue in Canada.

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

The most popular global market for U.S.franchisors has been Canada.

Stockholders in a corporation normally exert a significant degree of control over the company's daily operations.

Which of the following is an advantage of the corporate form of business when compared to sole proprietorships and partnerships?

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

In a partnership,a(n)__________partner is an owner who is active in managing the company and has unlimited liability for claims against the firm.

The three major forms of business ownership in Canada are sole proprietorships,partnerships,and corporations.

Which of the following statements about partnerships is the most accurate?

In a franchise arrangement,ownership of all of the individual stores or outlets remains in the hands of the franchisor.

Dr.Driller is a dentist who is interested in incorporating as an individual.If he attempts to do so,Dr.Driller is likely to find that:

Which of the following is an advantage of a sole proprietorship?

One drawback of franchises is that they have a much higher failure rate than other types of business ventures.

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 people would be most interested in participating in a business organized as a co-operative?

The largest co-operative sector is the agricultural (farm)co-op.

Marco is a franchisee with Daggies,a chain of sandwich shops.His business was doing well until several Daggies franchisees got in trouble and were forced to close their shops.Soon afterward,Marco's business deteriorated and he too was forced to close.

A general partner has unlimited liability for the debts of the partnership only if he or she personally approved the decisions that resulted in those debts.

Partnerships have the largest share of business revenue in Canada.

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

The most popular global market for U.S.franchisors has been Canada.

Stockholders in a corporation normally exert a significant degree of control over the company's daily operations.

Which of the following is an advantage of the corporate form of business when compared to sole proprietorships and partnerships?

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

In a partnership,a(n)__________partner is an owner who is active in managing the company and has unlimited liability for claims against the firm.

The three major forms of business ownership in Canada are sole proprietorships,partnerships,and corporations.

Which of the following statements about partnerships is the most accurate?

In a franchise arrangement,ownership of all of the individual stores or outlets remains in the hands of the franchisor.

Dr.Driller is a dentist who is interested in incorporating as an individual.If he attempts to do so,Dr.Driller is likely to find that:

Which of the following is an advantage of a sole proprietorship?

One drawback of franchises is that they have a much higher failure rate than other types of business ventures.

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