Question 1

Which of the following statements is true about franchisors and franchisee-sponsored web sites?

Accepted Answer

A) few brick-and-mortar franchises have expanded their business online. 
B) franchisees can do as they please on their own web sites. 
C) franchisee web sales can hurt the franchisor financially. 
D) many franchisors prohibit them. 
A) few brick-and-mortar franchises have expanded their business online. 
B) franchisees can do as they please on their own web sites. 
C) franchisee web sales can hurt the franchisor financially. 
D) many franchisors prohibit them.

Question 2

Jim wants to start a business.He is attracted by the idea of being his own boss,and wants to get started with a minimum of expense and hassle.He is very confident in his abilities,so he is not particularly worried about financial risks.All of these factors suggest that Jim would favour starting his business as a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 3

The first step in starting a sole proprietorship is to fill out a proprietorship charter application form and file it with the provincial government.

Accepted Answer

A) True 
 B)False

Question 4

Mehdi operates a sole proprietorship,but he is in poor health and may be unable to continue running the business.If Mehdi becomes incapacitated,his business:

Accepted Answer

A) automatically continues under new management as a sole proprietorship. 
B) automatically converts into a public corporation with stock sold to interested investors. 
C) becomes the property of the most senior employee who wishes to continue operating the firm. 
D) ceases to exist unless sold or taken over by Mehdi's heirs. 
A) automatically continues under new management as a sole proprietorship. 
B) automatically converts into a public corporation with stock sold to interested investors. 
C) becomes the property of the most senior employee who wishes to continue operating the firm. 
D) ceases to exist unless sold or taken over by Mehdi's heirs.

Question 5

Compared to sole proprietorships,partnerships offer the advantage of shared management and pooled knowledge.

Accepted Answer

A) True 
 B)False

Question 6

Ellen has just been granted a franchise from Tim Horton's.The new business will be set up as a:

Accepted Answer

A) sole proprietorship 
B) corporation 
C) partnership 
D) any form of business she chooses 
A) sole proprietorship 
B) corporation 
C) partnership 
D) any form of business she chooses

Question 7

Global franchising offers:

Accepted Answer

A) few opportunities for Canadian investors. 
B) American firms the opportunity to market goods overseas without any need to adjust for cultural differences. 
C) opportunities for both large and small franchises. 
D) opportunities for the largest franchise systems,but not small ones. 
A) few opportunities for Canadian investors. 
B) American firms the opportunity to market goods overseas without any need to adjust for cultural differences. 
C) opportunities for both large and small franchises. 
D) opportunities for the largest franchise systems,but not small ones.

Question 8

An owner of a corporation is known as a:

Accepted Answer

A) limited partner. 
B) shareholder. 
C) director. 
D) general partner. 
A) limited partner. 
B) shareholder. 
C) director. 
D) general partner.

Question 9

When comparing partnerships to sole proprietorships,an advantage of partnerships is that they:

Accepted Answer

A) cost less to organize. 
B) limited liability for the general partner. 
C) are easier to terminate. 
D) give the firm a stronger financial foundation. 
A) cost less to organize. 
B) limited liability for the general partner. 
C) are easier to terminate. 
D) give the firm a stronger financial foundation.

Question 10

In today's economy,only large business enterprises should operate as corporations.

Accepted Answer

A) True 
 B)False

Question 11

Few people today start their own business.

Accepted Answer

A) True 
 B)False

Question 12

Limited partnerships are just like general partnerships,except that they are organized to operate as a growing concern for only a limited time period.

Accepted Answer

A) True 
 B)False

Question 13

Most provinces have legal restrictions that prevent individuals from incorporating.

Accepted Answer

A) True 
 B)False

Question 14

The legal authorization for a company to use the corporate format is known as the articles of incorporation.

Accepted Answer

A) True 
 B)False

Question 15

A corporation can raise financial capital by selling shares of stock to interested investors.

Accepted Answer

A) True 
 B)False

Question 16

Todd and Jorge have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails.One way for both Todd and Jorge to avoid this risk would be to organize their firm as a:

Accepted Answer

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

Which of the following statements is true about franchisors and franchisee-sponsored web sites?

The first step in starting a sole proprietorship is to fill out a proprietorship charter application form and file it with the provincial government.

Mehdi operates a sole proprietorship,but he is in poor health and may be unable to continue running the business.If Mehdi becomes incapacitated,his business:

Compared to sole proprietorships,partnerships offer the advantage of shared management and pooled knowledge.

Ellen has just been granted a franchise from Tim Horton's.The new business will be set up as a:

Global franchising offers:

An owner of a corporation is known as a:

When comparing partnerships to sole proprietorships,an advantage of partnerships is that they:

In today's economy,only large business enterprises should operate as corporations.

Few people today start their own business.

Limited partnerships are just like general partnerships,except that they are organized to operate as a growing concern for only a limited time period.

Most provinces have legal restrictions that prevent individuals from incorporating.

The legal authorization for a company to use the corporate format is known as the articles of incorporation.

A corporation can raise financial capital by selling shares of stock to interested investors.

Todd and Jorge have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails.One way for both Todd and Jorge to avoid this risk would be to organize their firm as a:

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 is true about franchisors and franchisee-sponsored web sites?

The first step in starting a sole proprietorship is to fill out a proprietorship charter application form and file it with the provincial government.

Mehdi operates a sole proprietorship,but he is in poor health and may be unable to continue running the business.If Mehdi becomes incapacitated,his business:

Compared to sole proprietorships,partnerships offer the advantage of shared management and pooled knowledge.

Ellen has just been granted a franchise from Tim Horton's.The new business will be set up as a:

Global franchising offers:

An owner of a corporation is known as a:

When comparing partnerships to sole proprietorships,an advantage of partnerships is that they:

In today's economy,only large business enterprises should operate as corporations.

Few people today start their own business.

Limited partnerships are just like general partnerships,except that they are organized to operate as a growing concern for only a limited time period.

Most provinces have legal restrictions that prevent individuals from incorporating.

The legal authorization for a company to use the corporate format is known as the articles of incorporation.

A corporation can raise financial capital by selling shares of stock to interested investors.

Todd and Jorge have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails.One way for both Todd and Jorge to avoid this risk would be to organize their firm as a:

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