Exam 5: Forms of Business Ownership

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

Tara Brtek owns and operates the Singing Pig Food Company.Brtek makes and markets 20 different gourmet mustards,salsas,marinades,and dip mixes using its crooning pig logo.If Tara decides to incorporate her business to make it easier to find investors,what would be her first step?

Isadore Alfonse is considering the purchase of a Bonus Building Care franchise.Alfonse is NOT likely to get assistance from the commercial cleaning franchisor in which of the following areas?

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

Sanford Lee is planning to open a pizza parlour.He has a secret tomato sauce recipe that he does not want to divulge to anyone.Lee also wants to have sole responsibility for all business decisions.What sort of organization should Lee form?

Pete Yankin and Ken Lowery established a company that markets fishing expeditions.Yankin and Lowery share responsibilities for booking the trips,gathering supplies,and guiding groups into locations where they can fish for salmon.Since the two share any profit equally,what sort of business do they have?

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

Which type of business organization experiences the least governmental regulation?

A ____________________ is form of business organization that is created to carry out a single project and is often dissolved upon completion.

What is the most common form of business organization?

Jayson Tully is contemplating the purchase of a Subway restaurant franchise.Tully has made a list of the disadvantages that he faces.Which of the following is actually an advantage?

The most likely strategies for companies in the future is to continue to seek out large merger opportunities.

Articles of incorporation usually specify the life of a corporation as a certain number of predetermined years.

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

The franchise agreement is BEST described by which of the following?

A ____________________ is the combining of two or more firms to form one new company.

North American Van Lines and Allied Van Lines merged to create the world's largest moving company.Prior to the merger,North American was the leading company in moving high-end merchandise such as computer and hospital equipment,while Allied specialized in households.What type of merger is this?

Ralston Smythe owns Heritage Inn with four other people.All of the owners have limited financial risk.Smythe's inn is which of the following business structures?

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

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