BLAW CH 35

corporations

In a business trust, the trustees and beneficiaries enjoy limited liability, and in most states business trusts are taxed like _______.

malpractice

In a(n) LLP, if one partner commits _______, the other partners' personal assets cannot be taken.

general

In a(n) ______ partnership, the partners divide the profits and the management responsibilities and share unlimited personal liability for the firm's debts.

franchisee

A franchise is a business organization that exists because of an arrangement between the franchisor, an owner of a trade name or trademark, and the ______, a person who sells goods or services under the trade name or trademark.

organization

A limited liability company is formed by filing articles of ______ in the state in which its members want to establish their company.

voluntary

A partnership is a(n)_______ association between 2 or more persons who co-own a business for profit.

management

A sole proprietorship is a form of business organization in which the owner is in sole control of profit and _______.

joint stock

A(n) ______ company is a partnership agreement in which company members hold transferable shares, while all the goods of the company are held in the names of the partners.

corporation

A(n) ______ is a legal entity formed by selling shares of stock to investors.

capital

Compared to the sole proprietorship, it is relatively easier for a corporation to raise _______ by issuing stock

limited

Corporate shareholders have ______ liability for corporate debts.

engage in business

Generally, in a(n)cooperative, members receive dividends in proportion to how many times per year they _______ with the cooperative.

notice

If the franchisee does not meet the requirements in the franchise agreement, the franchisor can terminate it, but must give sufficient

partnership

In most cases, a ________ is not considered a legal entity separate from its owners.

corporation, partnership, sole proprietorship

The 3 major forms of business organizations in the United States include all of the following

limited liability company

The ______ combines the tax advantages and management flexibility of a partnership with the limited liability of a corporation.

limited

The ______ liability company is an unincorporated form of business organization that combines the most advantageous features of partnerships and corporations.

franchisor

The ______ may require the franchisee to purchase certain supplies from the franchisor at a set price.

franchise agreement

The franchisor usually includes in the ______ those business standards that must be met, such as for cleanliness.

personally (individually)

The major disadvantage of partnerships is that partners are ______ liable for the firm's debts.

family enterprise

The major forms of business organizations in the United States include all of the following except: _______.

sole proprietorship; partnership

The most frequently cited advantage of the limited liability company is that for tax purposes, the Internal Revenue Service generally treats the limited liability company like a(n) ______ or ______.

limited liability

To obtain _______ ______ , a member does not have to relinquish his or her right to participate in management.

A,D,E

What is usually required for a franchisor to terminate a franchise? (Check all that apply.) A. Good cause B. A trial period of at least 3 years C. Court permission D. Notice to the franchisee E. Documented warnings to franchisee

joint venture

Which form of business organization is defined as a relationship between two or more persons or corporations created for a specific business undertaking?

little control over the franchise

Which of the following is a disadvantage of a franchise for the franchisor?

Takes low risk in starting a franchise

Which of the following is an advantage of a franchise for the franchisor?

business trust

A(n) ______ is a business organization governed by a group of trustees who operate the organization for beneficiaries.

syndicate

A(n) ______ is an investment group that comes together for the explicit purpose of financing a specific large project.

sole proprietorship

A(n) ______ is terminated automatically when the owner dies.

limited

A(n) ______ partnership is an agreement between at least one general partner and at least one limited partner.

beneficiaries

A(n) business trust is a business organization governed by a group of trustees who operate the organization for _______.

100

An S corporation cannot have more than ______ shareholders.

partnership

An S corporation is a corporation under federal tax laws, but is taxed like a(n) ______.

personal

As in a partnership, shareholders in a(n) joint stock have ______ liability, and in most cases the company is not a separate legal entity.

limited liability partnership

In a ______, all the partners assume liability for one partner's professional malpractice, but only to the extent of the partnership's assets.

general partnership

In a ______, the partners divide the profits and the management responsibilities.

limited

In a business trust, the trustees and beneficiaries enjoy _______ liability, and in most states business trusts are taxed like corporations

personal income

In a sole proprietorship, profits are taxed as: _______.

termination

Much of the litigation associated with franchises involves wrongful ______ of the franchise.

B

Which of the following is an accurate statement regarding the partnership agreement? A. A written partnership agreement is required to form a partnership. B. A written partnership agreement is not required to form a partnership. C. No partnership agreement of any kind is required to form a partnership. D. An official partnership agreement is required to form a partnership.

double taxation of profits

Which of the following is an advantage of operating a business as a sole proprietorship?

Amalgamated venture

Which of the following is not a specialized form of business organization? Cooperative, Amalgamated venture, Business trust, Joint stock company

registered

In its articles of organization, the limited liability company must include the name and address of both its principal business and a ______ agent for service.

Partnership

In which of the following forms of business organizations are owners personally liable for business debts?

unlimited

Partner liability for partnership debts means: Partners have _____ personal liability for partnership debts.

Corporate partnership

Which of the following is not a specialized form of business organization? Joint venture, Syndicate. Corporate partnership, Business trust

A

Which of the following is not a type of partnership? A. Conglomerate B. Limited liability partnership C. General partnership D. Limited partnership

S-corporation

Which of the following is not a type of partnership? S-corporation Joint venture Cooperative Franchise

Limited liability of partners

Which of the following is not an advantage of operating a business as a partnership?

Immunity from personal liability

Which of the following is not an advantage of operating a business as a sole proprietorship?

Cooperative

Which of the following specialized forms of business organizations is defined as an organization formed by individuals who pool resources to gain a market advantage?

franchise

Which specialized form of business organization exists because of an arrangement between the owner of a trade name or trademark and the person who sells goods or services under the trade name or trademark?