Question 1

One of the advantages of the sole proprietorship is that the owner keeps all the profits.

Accepted Answer

A) True 
 B)False  True

Question 2

What type of liability means that business damages and/or debts can also be attached to the personal assets of the owners?

Accepted Answer

A)  informal liability 
B)  limited liability 
C)  unlimited liability 
D)  funding liability 
A)  informal liability 
B)  limited liability 
C)  unlimited liability 
D)  funding liability C

Question 3

Which of the following provides the legal and managerial guidelines for operating the company?

Accepted Answer

A)  the constitution 
B)  the articles of incorporation 
C)  the corporate structure 
D)  the bylaws 
A)  the constitution 
B)  the articles of incorporation 
C)  the corporate structure 
D)  the bylaws D

Question 4

An advantage of a partnership is the availability of capital.

Accepted Answer

A) True 
 B)False

Question 5

A private corporation sells only half of its shares on the stock exchange.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements best describes the partnership as a form of business ownership?

Accepted Answer

A)  Disagreements between partners are rare. 
B)  Termination of the partnership is simple. 
C)  Formation of the partnership is simple. 
D)  Liability for the partners is limited. 
A)  Disagreements between partners are rare. 
B)  Termination of the partnership is simple. 
C)  Formation of the partnership is simple. 
D)  Liability for the partners is limited.

Question 7

Why do most private companies become public companies?

Accepted Answer

A)  to diversify the shareholders 
B)  to raise extra money 
C)  to gain more exposure 
D)  so the owners can get out of the business 
A)  to diversify the shareholders 
B)  to raise extra money 
C)  to gain more exposure 
D)  so the owners can get out of the business

Question 8

Which of the following is an advantage of sole proprietor ownership?

Accepted Answer

A)  direct control of the business 
B)  keeping 50 percent of the profits 
C)  limited liability 
D)  better terms from suppliers 
A)  direct control of the business 
B)  keeping 50 percent of the profits 
C)  limited liability 
D)  better terms from suppliers

Question 9

A corporation can best be described by which of the following statements?

Accepted Answer

A)  It cannot sue or be sued. 
B)  It ends when the owner of the corporation charter dies. 
C)  It does not have a life separate from its owners. 
D)  It does not have a size limitation. 
A)  It cannot sue or be sued. 
B)  It ends when the owner of the corporation charter dies. 
C)  It does not have a life separate from its owners. 
D)  It does not have a size limitation.

Question 10

Which type of merger brings together companies in unrelated businesses to reduce risk?

Accepted Answer

A)  diagonal merger 
B)  horizontal merger 
C)  vertical merger 
D)  conglomerate 
A)  diagonal merger 
B)  horizontal merger 
C)  vertical merger 
D)  conglomerate

Question 11

The franchisor generally does NOT provide the franchisee with which of the following?

Accepted Answer

A)  assistance in site selection 
B)  wholesale prices on supplies 
C)  use of company name and logo 
D)  help in employee selection 
A)  assistance in site selection 
B)  wholesale prices on supplies 
C)  use of company name and logo 
D)  help in employee selection

Question 12

How is the board of directors for a corporation created?

Accepted Answer

It is elec

Question 13

What is a disadvantage of franchising to the franchisee?

Accepted Answer

A)  defined territory 
B)  restricted operating freedom 
C)  minimal assistance in site location 
D)  lack of management training 
A)  defined territory 
B)  restricted operating freedom 
C)  minimal assistance in site location 
D)  lack of management training

Question 14

Al Tomlin and Wilson Nkata recently closed their frame shop because they could not pay the outstanding business debts. Since Tomlin and Nkata are both liable for the debts, what sort of business do they have?

Accepted Answer

A)  general partnership 
B)  private corporation 
C)  open corporation 
D)  limited partnership 
A)  general partnership 
B)  private corporation 
C)  open corporation 
D)  limited partnership

Question 15

Faye Adkins had a relish that her family and friends raved about. As a result of moral and financial support from her family, Adkins began her own business and sells her relish in local supermarkets and on the Internet. Adkins is an example of which of the following?

Accepted Answer

A)  sole partnership 
B)  sole proprietorship 
C)  S corporation 
D)  limited partnership 
A)  sole partnership 
B)  sole proprietorship 
C)  S corporation 
D)  limited partnership

Question 16

Which of the following is a disadvantage associated with a partnership?

Accepted Answer

A)  unlimited liability 
B)  inflexibility 
C)  harder to terminate business 
D)  less credit available 
A)  unlimited liability 
B)  inflexibility 
C)  harder to terminate business 
D)  less credit available

Question 17

What is the combination of two companies that join to form one company?

Accepted Answer

A)  merger 
B)  joint venture 
C)  cartel 
D)  conglomerate 
A)  merger 
B)  joint venture 
C)  cartel 
D)  conglomerate

Question 18

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

Accepted Answer

A)  ongoing management training programs 
B)  short-term credit for buying supplies 
C)  a peer group for support 
D)  royalty fees 
A)  ongoing management training programs 
B)  short-term credit for buying supplies 
C)  a peer group for support 
D)  royalty fees

Question 19

List the three major categories of business ownership.

Accepted Answer

sole propr

Question 20

Double taxation is a distinct advantage that corporations have over other forms of ownership.

Accepted Answer

A) True 
 B)False

One of the advantages of the sole proprietorship is that the owner keeps all the profits.

What type of liability means that business damages and/or debts can also be attached to the personal assets of the owners?

Which of the following provides the legal and managerial guidelines for operating the company?

An advantage of a partnership is the availability of capital.

A private corporation sells only half of its shares on the stock exchange.

Which of the following statements best describes the partnership as a form of business ownership?

Why do most private companies become public companies?

Which of the following is an advantage of sole proprietor ownership?

A corporation can best be described by which of the following statements?

Which type of merger brings together companies in unrelated businesses to reduce risk?

The franchisor generally does NOT provide the franchisee with which of the following?

How is the board of directors for a corporation created?

What is a disadvantage of franchising to the franchisee?

Al Tomlin and Wilson Nkata recently closed their frame shop because they could not pay the outstanding business debts. Since Tomlin and Nkata are both liable for the debts, what sort of business do they have?

Faye Adkins had a relish that her family and friends raved about. As a result of moral and financial support from her family, Adkins began her own business and sells her relish in local supermarkets and on the Internet. Adkins is an example of which of the following?

Which of the following is a disadvantage associated with a partnership?

What is the combination of two companies that join to form one company?

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

List the three major categories of business ownership.

Double taxation is a distinct advantage that corporations have over other forms of ownership.

Political Environment

Economic Environment

Social Environment

Technological Environment

International Environment

Entrepreneurship and Small Business

Understanding the Business

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing

Creating Marketing Strategies

Achieving World-class Operations Management

Accounting for Financial Success

Understanding Money and the Canadian Financial System

Finance

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Exam 8: Forms of Business Ownership

One of the advantages of the sole proprietorship is that the owner keeps all the profits.

What type of liability means that business damages and/or debts can also be attached to the personal assets of the owners?

Which of the following provides the legal and managerial guidelines for operating the company?

An advantage of a partnership is the availability of capital.

A private corporation sells only half of its shares on the stock exchange.

Which of the following statements best describes the partnership as a form of business ownership?

Why do most private companies become public companies?

Which of the following is an advantage of sole proprietor ownership?

A corporation can best be described by which of the following statements?

Which type of merger brings together companies in unrelated businesses to reduce risk?

The franchisor generally does NOT provide the franchisee with which of the following?

How is the board of directors for a corporation created?

What is a disadvantage of franchising to the franchisee?

Al Tomlin and Wilson Nkata recently closed their frame shop because they could not pay the outstanding business debts. Since Tomlin and Nkata are both liable for the debts, what sort of business do they have?

Faye Adkins had a relish that her family and friends raved about. As a result of moral and financial support from her family, Adkins began her own business and sells her relish in local supermarkets and on the Internet. Adkins is an example of which of the following?

Which of the following is a disadvantage associated with a partnership?

What is the combination of two companies that join to form one company?

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

List the three major categories of business ownership.

Double taxation is a distinct advantage that corporations have over other forms of ownership.

Political Environment

Economic Environment

Social Environment

Technological Environment

International Environment

Entrepreneurship and Small Business

Understanding the Business

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing

Creating Marketing Strategies

Achieving World-class Operations Management

Accounting for Financial Success

Understanding Money and the Canadian Financial System

Finance

Filters