Exam 5: How to Form a Business

Tess and Tijuana have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails.One way for Tess and Tijuana to avoid this risk would be to organize their firm as a(n):

Which of the following statements about buying a franchise is most accurate?

One of the major reasons for the wave of mergers in the late 1990s and early 2000s was the desire of firms to expand within their own markets.

A foreign corporation is chartered in a country outside the U.S.

Travis has agreed to invest $16,000 in a partnership with his sister and brother-in-law.He does not intend to actively work in the partnership,nor does he wish to risk any of his own assets other than the $16,000 he initially invests.The partnership has agreed to permit him to share in the profits.As an expert on forms of business ownership,you know that Travis is a ______________ in this partnership.

Stockholders in a corporation accept unlimited liability for the corporation's debts.

The difference between a merger and an acquisition is:

Opening and operating a franchise in a different country:

Jocelyn belongs to a food cooperative in her community.As a member,she can expect to have a vote in the election of the cooperative's board of directors.

Which of the following statements identifies an advantage for women who have become franchisors in recent years?

Three types of corporate mergers are:

Although franchise arrangements are a good source of income for the franchisee,these businesses do not contribute significantly toward job creation.

The stockholders in a corporation elect a board of directors to oversee the company's major policy issues.

Which of the following is an attractive benefit of a corporation?

Stockholders in a corporation have limited liability.

The reason a professional such as a lawyer or doctor would incorporate his/her business is

The purpose of a conglomerate merger is to diversify operations and investments.

A limited partnership refers to a partnership set up for a temporary purpose,such as a real estate development project.

All partners in a general partnership have limited liability for the debts of their firm.

Several years ago,Regis Corporation,a very large hair styling salon company purchased 60 "Your Father's Mustache" salons.Although this was initially an acquisition,the merging of these two businesses was a(n)___________.Regis went on to purchase several hair care product companies.Joining forces with hair care product companies would represent a ____________.