Exam 5: Forms of Business Ownership and Organization

Ben is the owner of a small mushroom farm in Ontario. Ben would like to join with other growers to create an organization that will promote and distribute mushrooms. The form of ownership that would be most suited for the growers is the ______.

Initial investment amounts and ongoing franchise fees tend to be a relatively small cost of owning and operating a franchise.

A vertical merger occurs between firms at different levels in the distribution channel.

Greg buys a McDonald's franchise. Greg is the ______ and ______ for McDonald's.

Complete the following using the terms listed below. -During a(n) ______, two or more firms combine to form one company.

Company XYZ would like to sell its products in a foreign country. Since the products will be best sold by locals in the foreign country, the best type of contract-based agreement to use will be

Small businesses that provide services have experienced a greater increase in new jobs than those that produce goods.

About 98% of business in Canada employ fewer than 100 employees.

Assume that Microsoft decides to invest some of its excess cash by acquiring Starbucks Coffee. This would be a ______.

A restaurant franchisee purchases which of the following from the franchisor?

Small businesses often hire the youngest workers.

Which of the following is a trend in the area of franchising?

Franchisors typically experience a greater return on investment than if the firm were run entirely as a company-owned chain.

A small business fails in the management sense when ______.

Mention and explain three ways through which small business contribute to the Canadian economy.

Large corporations often buy out smaller businesses and replace them with larger operations. How do some small businesses manage to survive, in spite of aggressive moves by larger corporations?

One important advantage of franchising is its ability to provide business expertise for relatively inexperienced franchisees.

Which of the following statements regarding franchising is FALSE?

Today, 80 percent of majority women-owned small and medium-sized enterprises operate in the manufacturing sector.

Complete the following using the terms listed below. -Having a(n) ______ improves the chances of success for a new business by providing an orderly statement of a company's goals.