Question 1

When Addison Wilcox buys an H&R Block franchise, he becomes a franchisee.

Accepted Answer

A) True 
 B)False

Question 2

A _____ is a business that is established, owned, operated, and often financed by one person.

Accepted Answer

The answer of A _____ is a business that is...

Question 3

Multinational oil companies such as HYPERLINK "http://en.wikipedia.org/wiki/ExxonMobil" \o "ExxonMobil" ExxonMobil, HYPERLINK "http://en.wikipedia.org/wiki/Royal_Dutch_Shell" \o "Royal Dutch Shell" Royal Dutch Shell, or HYPERLINK "http://en.wikipedia.org/wiki/BP" \o "BP" BP are active all the way along the supply chain from locating HYPERLINK "http://en.wikipedia.org/wiki/Crude_oil" \o "Crude oil" crude oil deposits, drilling and extracting crude, transporting it around the world, HYPERLINK "http://en.wikipedia.org/wiki/Refinery" \o "Refinery" refining it into petrochemicals such as HYPERLINK "http://en.wikipedia.org/wiki/Gasoline" \o "Gasoline" gasoline, to distributing the fuel to company-owned retail stations, where it is sold to consumers.To gain this complete control of the various resources needed to product oil and gas, the companies had to have engaged in _____ mergers.

Accepted Answer

A) acquired 
B) combination 
C) horizontal 
D) functional 
E) vertical 
A) acquired 
B) combination 
C) horizontal 
D) functional 
E) vertical

Question 4

Which of the following is a disadvantage of sole proprietor ownership?

Accepted Answer

A) Difficulty in raising capital 
B) No special taxation 
C) Ease of dissolution 
D) Ease of formation 
E) Freedom from government regulation 
A) Difficulty in raising capital 
B) No special taxation 
C) Ease of dissolution 
D) Ease of formation 
E) Freedom from government regulation

Question 5

An _____ is a hybrid entity that is organized like a corporation, with stockholders, board of directors, and officer, but taxed like a partnership with income and losses flowing through to the stockholders and taxed as their personal income.

Accepted Answer

The answer of An _____ is a hybrid entity that...

Question 6

Why would a company choose to engage in a conglomerate merger instead of a vertical or horizontal merger?

Accepted Answer

A) A conglomerate merger is done to reduce risk. 
B) Double taxation does not occur when the merger is with a company outside the normal business environment of the acquiring company. 
C) The conglomerate merger results in reduced liability while the other two types of mergers do not. 
D) It is easier to dissolve a conglomerate merger than the other types of mergers. 
E) Government regulation of conglomerate mergers is minimal. 
A) A conglomerate merger is done to reduce risk. 
B) Double taxation does not occur when the merger is with a company outside the normal business environment of the acquiring company. 
C) The conglomerate merger results in reduced liability while the other two types of mergers do not. 
D) It is easier to dissolve a conglomerate merger than the other types of mergers. 
E) Government regulation of conglomerate mergers is minimal.

Question 7

A type of business entity that provides liability protection but is taxed like a partnership is a:

Accepted Answer

A) franchise 
B) general partnership 
C) C corporation 
D) S corporation 
E) joint venture 
A) franchise 
B) general partnership 
C) C corporation 
D) S corporation 
E) joint venture

Question 8

Tonya Thomas is tired of working for other people.She wants to start her own administrative services businesses and control her own work schedule.She wants to have sole responsibility for all business decisions.Thomas should form a(n):

Accepted Answer

A) limited cooperative 
B) limited partnership 
C) sole proprietorship 
D) joint venture 
E) S corporation 
A) limited cooperative 
B) limited partnership 
C) sole proprietorship 
D) joint venture 
E) S corporation

Question 9

_____ are the owners of a corporation.

Accepted Answer

Stockholde

Question 10

The two types of cooperatives are wholesale and retail.

Accepted Answer

A) True 
 B)False

Question 11

Marc Wool purchased a franchise from Maaco Collision Repair service.Wool is the _____ in this franchise agreement.

Accepted Answer

franchisee

Question 12

An S corporation is generally set up to:

Accepted Answer

A) take advantage of limited liability 
B) reduce tax burdens 
C) easy entry into an industry 
D) implement an expansion strategy 
E) attract capital 
A) take advantage of limited liability 
B) reduce tax burdens 
C) easy entry into an industry 
D) implement an expansion strategy 
E) attract capital

Question 13

Which of the following is a disadvantage for the fast-food franchisee?

Accepted Answer

A) on-going management training programs 
B) a peer group for support 
C) royalty fees 
D) short-term credit for buying supplies 
E) recognized name and product 
A) on-going management training programs 
B) a peer group for support 
C) royalty fees 
D) short-term credit for buying supplies 
E) recognized name and product

Question 14

Which of the following statements about limited liability companies (LLCs) is true?

Accepted Answer

A) LLCs are not corporations. 
B) LLCs are like S corporations in that they appeal to small businesses. 
C) LLCs offer their owners the option of being taxed as either a partnership or a corporation. 
D) LLCs are legal in all states in the U.S. 
E) All of the above statements about LLCs are true. 
A) LLCs are not corporations. 
B) LLCs are like S corporations in that they appeal to small businesses. 
C) LLCs offer their owners the option of being taxed as either a partnership or a corporation. 
D) LLCs are legal in all states in the U.S. 
E) All of the above statements about LLCs are true.

Question 15

Which of the following statements about incorporation is true?

Accepted Answer

A) A corporation has to incorporate in the state in which it is based. 
B) A corporation is not subject to the laws of the state in which it is formed. 
C) Articles of incorporation may vary slightly from state to state. 
D) Corporations are taxed the same regardless of the state in which they are chartered. 
E) Corporations must register in each state in which they want to do business. 
A) A corporation has to incorporate in the state in which it is based. 
B) A corporation is not subject to the laws of the state in which it is formed. 
C) Articles of incorporation may vary slightly from state to state. 
D) Corporations are taxed the same regardless of the state in which they are chartered. 
E) Corporations must register in each state in which they want to do business.

Question 16

International Association of Food Industry Suppliers has completed its _____ merger with the Food Processing Machinery Association.The action represents a coming together of equals in which both boards and staffs are committed to creating a new association that is stronger and better equipped to serve its members' growing needs to more effectively compete in their marketplaces.

Accepted Answer

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

Question 17

In a sole proprietorship, the owner is fully liable for all business debts of the company.This term is called _____ liability.

Accepted Answer

The answer of In a sole proprietorship, the owner is...

Question 18

What type of business organization generates the most total sales?

Accepted Answer

A) General partnership 
B) Corporation 
C) Sole proprietorship 
D) Cooperative 
E) Partnership 
A) General partnership 
B) Corporation 
C) Sole proprietorship 
D) Cooperative 
E) Partnership

Question 19

The headquarters, seller, and supplier of the service or method of operation of a franchise is called the:

Accepted Answer

A) contractee 
B) direct seller 
C) franchisee 
D) franchisor 
E) provisioner 
A) contractee 
B) direct seller 
C) franchisee 
D) franchisor 
E) provisioner

Question 20

What is the first step in incorporating a company?

Accepted Answer

to select

When Addison Wilcox buys an H&R Block franchise, he becomes a franchisee.

A _____ is a business that is established, owned, operated, and often financed by one person.

Which of the following is a disadvantage of sole proprietor ownership?

An _____ is a hybrid entity that is organized like a corporation, with stockholders, board of directors, and officer, but taxed like a partnership with income and losses flowing through to the stockholders and taxed as their personal income.

Why would a company choose to engage in a conglomerate merger instead of a vertical or horizontal merger?

A type of business entity that provides liability protection but is taxed like a partnership is a:

Tonya Thomas is tired of working for other people.She wants to start her own administrative services businesses and control her own work schedule.She wants to have sole responsibility for all business decisions.Thomas should form a(n):

_____ are the owners of a corporation.

The two types of cooperatives are wholesale and retail.

Marc Wool purchased a franchise from Maaco Collision Repair service.Wool is the _____ in this franchise agreement.

An S corporation is generally set up to:

Which of the following is a disadvantage for the fast-food franchisee?

Which of the following statements about limited liability companies (LLCs) is true?

Which of the following statements about incorporation is true?

In a sole proprietorship, the owner is fully liable for all business debts of the company.This term is called _____ liability.

What type of business organization generates the most total sales?

The headquarters, seller, and supplier of the service or method of operation of a franchise is called the:

What is the first step in incorporating a company?

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

Exam 4: Forms of Business Ownership

When Addison Wilcox buys an H&R Block franchise, he becomes a franchisee.

A _____ is a business that is established, owned, operated, and often financed by one person.

Which of the following is a disadvantage of sole proprietor ownership?

An _____ is a hybrid entity that is organized like a corporation, with stockholders, board of directors, and officer, but taxed like a partnership with income and losses flowing through to the stockholders and taxed as their personal income.

Why would a company choose to engage in a conglomerate merger instead of a vertical or horizontal merger?

A type of business entity that provides liability protection but is taxed like a partnership is a:

Tonya Thomas is tired of working for other people.She wants to start her own administrative services businesses and control her own work schedule.She wants to have sole responsibility for all business decisions.Thomas should form a(n):

_____ are the owners of a corporation.

The two types of cooperatives are wholesale and retail.

Marc Wool purchased a franchise from Maaco Collision Repair service.Wool is the _____ in this franchise agreement.

An S corporation is generally set up to:

Which of the following is a disadvantage for the fast-food franchisee?

Which of the following statements about limited liability companies (LLCs) is true?

Which of the following statements about incorporation is true?

In a sole proprietorship, the owner is fully liable for all business debts of the company.This term is called _____ liability.

What type of business organization generates the most total sales?

The headquarters, seller, and supplier of the service or method of operation of a franchise is called the:

What is the first step in incorporating a company?

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