Question 1

Restricted operating freedom in franchising means that the franchisee must conform to:

Accepted Answer

A) franchise product standards 
B) facilities design 
C) operating rules 
D) a specific, defined territory 
E) all of the above 
A) franchise product standards 
B) facilities design 
C) operating rules 
D) a specific, defined territory 
E) all of the above

Question 2

Distinguish between a merger and an acquisition.

Accepted Answer

A merger is a combination of two or more

Question 3

IBM purchased MRO Software Inc.for $740 million.MRO was a niche provider of software and services to help customers including nuclear power plants and oil companies.IBM, plans to fold MRO into its software unit.This is an example of a(n):

Accepted Answer

A) joint venture 
B) merger 
C) conglomerate 
D) voluntary union 
E) acquisition 
A) joint venture 
B) merger 
C) conglomerate 
D) voluntary union 
E) acquisition

Question 4

Changing demographics drive the franchise industry growth.

Accepted Answer

A) True 
 B)False

Question 5

A term that means that business damages and/or debts can also be attached to the personal assets of the owners is ______ liability.

Accepted Answer

A) limited 
B) informal 
C) funding 
D) unlimited 
E) asset 
A) limited 
B) informal 
C) funding 
D) unlimited 
E) asset

Question 6

A disadvantage of a partnership is that any partner may have to pay all of the debts of the company regardless of who incurred the debts.

Accepted Answer

A) True 
 B)False

Question 7

Why do most large companies have outside directors on their boards?

Accepted Answer

A) to meet federal government requirements 
B) to create globalization efforts 
C) to provide independent benchmarks 
D) to provide technology leadership 
E) to bring a fresh view to all of the corporation's activities 
A) to meet federal government requirements 
B) to create globalization efforts 
C) to provide independent benchmarks 
D) to provide technology leadership 
E) to bring a fresh view to all of the corporation's activities

Question 8

Thom Georges wants to open a store where he sells nothing but antique architectural features that he can salvage from old houses being torn down to make way for progress.He has an eye for the kind of doors, windows, mantels, and so forth that decorators want, but he does not have all the funding he needs to get started.He has invited his parents to invest $40,000 in the enterprise.He has told them that if they do invest, they would have liabilities in the firm equal to but no greater than their investment.Georges is trying to get them to form a _____ with him.

Accepted Answer

A) closely-held corporation 
B) cooperative 
C) general partnership 
D) joint venture 
E) limited partnership 
A) closely-held corporation 
B) cooperative 
C) general partnership 
D) joint venture 
E) limited partnership

Question 9

An _____ is the purchase of a corporation by another corporation or by an investor group.

Accepted Answer

The answer of An _____ is the purchase of a...

Question 10

Jayson Tully is contemplating the purchase of a Popeye's Chicken franchise.Tully has made a list of the disadvantages that he assumes he will face as a new business owner.Which of the following is actually an advantage?

Accepted Answer

A) assistance in building plans 
B) conformity to operating procedures 
C) royalty fees 
D) defined territory 
E) up-front franchise fee 
A) assistance in building plans 
B) conformity to operating procedures 
C) royalty fees 
D) defined territory 
E) up-front franchise fee

Question 11

U.S.Lumber Company's purchase of EnviroPlastics, a manufacturer of plastic cutlery, is an example of a _____ merger.

Accepted Answer

A) conglomerate 
B) combination 
C) horizontal 
D) vertical 
E) cooperative 
A) conglomerate 
B) combination 
C) horizontal 
D) vertical 
E) cooperative

Question 12

In 2004, Albertson's Inc.purchased Southern California's premier fresh, gourmet, and specialty food retailer, Bristol Farms.This was an example of an acquisition.

Accepted Answer

A) True 
 B)False

Question 13

Ease of formation, flexibility, and diversity of management are advantages of the _____ form of business ownership.

Accepted Answer

A) partnership 
B) joint venture 
C) cooperative 
D) conglomerate 
E) corporation 
A) partnership 
B) joint venture 
C) cooperative 
D) conglomerate 
E) corporation

Question 14

A _____ is an organization formed by individuals or businesses with similar interests to gain benefits from size and collective ownership.

Accepted Answer

The answer of A _____ is an organization formed by...

Question 15

Clarence Danvers is buying a Cinnabon franchise at the airport in Tulsa.Danvers knows that he will get all of the following benefits EXCEPT:

Accepted Answer

A) a proven track record 
B) a set operating procedures 
C) assistance in personal income tax preparation 
D) standard goods and services 
E) national advertising 
A) a proven track record 
B) a set operating procedures 
C) assistance in personal income tax preparation 
D) standard goods and services 
E) national advertising

Question 16

Sole proprietorships:

Accepted Answer

A) are double taxed 
B) have unlimited liability 
C) are more difficult to dissolve than partnerships 
D) find is easy to raise needed capital 
E) are more closely regulated by the government than other forms of business 
A) are double taxed 
B) have unlimited liability 
C) are more difficult to dissolve than partnerships 
D) find is easy to raise needed capital 
E) are more closely regulated by the government than other forms of business

Question 17

What is double taxation?

Accepted Answer

Corporations must pay federal

Question 18

A corporation:

Accepted Answer

A) does not have a life separate from its owners 
B) cannot sue or be sued 
C) does not have a size limitation 
D) ends when the owner of the corporation charter dies 
E) is one of the easy types of businesses to form 
A) does not have a life separate from its owners 
B) cannot sue or be sued 
C) does not have a size limitation 
D) ends when the owner of the corporation charter dies 
E) is one of the easy types of businesses to form

Question 19

Double taxation in a corporation means:

Accepted Answer

A) the corporation must pay taxes twice a year 
B) earnings of the corporation and dividends of the shareholders both are taxed 
C) corporations can double their earnings without higher taxes 
D) corporations must pay both state and federal taxes 
E) none of the above 
A) the corporation must pay taxes twice a year 
B) earnings of the corporation and dividends of the shareholders both are taxed 
C) corporations can double their earnings without higher taxes 
D) corporations must pay both state and federal taxes 
E) none of the above

Question 20

The first step to incorporating a company is to:

Accepted Answer

A) select the company's name 
B) write the articles of incorporation 
C) buy necessary licenses and pay required taxes 
D) hold an organizational meeting 
E) create a board of directors 
A) select the company's name 
B) write the articles of incorporation 
C) buy necessary licenses and pay required taxes 
D) hold an organizational meeting 
E) create a board of directors

Restricted operating freedom in franchising means that the franchisee must conform to:

Distinguish between a merger and an acquisition.

IBM purchased MRO Software Inc.for $740 million.MRO was a niche provider of software and services to help customers including nuclear power plants and oil companies.IBM, plans to fold MRO into its software unit.This is an example of a(n):

Changing demographics drive the franchise industry growth.

A term that means that business damages and/or debts can also be attached to the personal assets of the owners is ______ liability.

A disadvantage of a partnership is that any partner may have to pay all of the debts of the company regardless of who incurred the debts.

Why do most large companies have outside directors on their boards?

An _____ is the purchase of a corporation by another corporation or by an investor group.

Jayson Tully is contemplating the purchase of a Popeye's Chicken franchise.Tully has made a list of the disadvantages that he assumes he will face as a new business owner.Which of the following is actually an advantage?

U.S.Lumber Company's purchase of EnviroPlastics, a manufacturer of plastic cutlery, is an example of a _____ merger.

In 2004, Albertson's Inc.purchased Southern California's premier fresh, gourmet, and specialty food retailer, Bristol Farms.This was an example of an acquisition.

Ease of formation, flexibility, and diversity of management are advantages of the _____ form of business ownership.

A _____ is an organization formed by individuals or businesses with similar interests to gain benefits from size and collective ownership.

Clarence Danvers is buying a Cinnabon franchise at the airport in Tulsa.Danvers knows that he will get all of the following benefits EXCEPT:

Sole proprietorships:

What is double taxation?

A corporation:

Double taxation in a corporation means:

The first step to incorporating a company is to:

Understanding Economic Systems and Business

Making Ethical Decisions and Managing a Socially Responsible Business

Competing in the Global Marketplace

Entrepreneurship: Starting and Managing Your Own Business

Management and Leadership in Todays Organizations

Designing Organizational Structures

Managing Human Resources and Labor Relations

Motivating Employees

Achieving World-Class Operations Management

Creating Products and Pricing Strategies to Meet Customers Needs

Distributing and Promoting Products and Services

Using Technology to Manage Information

Using Financial Information and Accounting

Understanding Money and Financial Institutions

Understanding Financial Management and Securities Markets

Your Career in Business

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Exam 4: Forms of Business Ownership

Restricted operating freedom in franchising means that the franchisee must conform to:

Distinguish between a merger and an acquisition.

IBM purchased MRO Software Inc.for $740 million.MRO was a niche provider of software and services to help customers including nuclear power plants and oil companies.IBM, plans to fold MRO into its software unit.This is an example of a(n):

Changing demographics drive the franchise industry growth.

A term that means that business damages and/or debts can also be attached to the personal assets of the owners is ______ liability.

A disadvantage of a partnership is that any partner may have to pay all of the debts of the company regardless of who incurred the debts.

Why do most large companies have outside directors on their boards?

An _____ is the purchase of a corporation by another corporation or by an investor group.

Jayson Tully is contemplating the purchase of a Popeye's Chicken franchise.Tully has made a list of the disadvantages that he assumes he will face as a new business owner.Which of the following is actually an advantage?

U.S.Lumber Company's purchase of EnviroPlastics, a manufacturer of plastic cutlery, is an example of a _____ merger.

In 2004, Albertson's Inc.purchased Southern California's premier fresh, gourmet, and specialty food retailer, Bristol Farms.This was an example of an acquisition.

Ease of formation, flexibility, and diversity of management are advantages of the _____ form of business ownership.

A _____ is an organization formed by individuals or businesses with similar interests to gain benefits from size and collective ownership.

Clarence Danvers is buying a Cinnabon franchise at the airport in Tulsa.Danvers knows that he will get all of the following benefits EXCEPT:

Sole proprietorships:

What is double taxation?

A corporation:

Double taxation in a corporation means:

The first step to incorporating a company is to:

Understanding Economic Systems and Business

Making Ethical Decisions and Managing a Socially Responsible Business

Competing in the Global Marketplace

Entrepreneurship: Starting and Managing Your Own Business

Management and Leadership in Todays Organizations

Designing Organizational Structures

Managing Human Resources and Labor Relations

Motivating Employees

Achieving World-Class Operations Management

Creating Products and Pricing Strategies to Meet Customers Needs

Distributing and Promoting Products and Services

Using Technology to Manage Information

Using Financial Information and Accounting

Understanding Money and Financial Institutions

Understanding Financial Management and Securities Markets

Your Career in Business

Filters