Buisness Ownership and Registration Test 6
Partnership
A _________ is a legal agreement between two or more people and is the least common form of business. Responses Franchise Partnership Corporation Sole proprietorship
Limited partnership
A __________ allows a silent partner to leave the business or be replaced without dissolving the partnership. Responses General partnership Joint venture Limited partnership Strategic alliance
True
A strategic alliance often requires an extensive search for a compatible partner. Responses True False
Extensive search for a compatible partner
A strategic alliance requires which of the following? Responses Sacrifice of business independence Substantial risk of bankruptcy if it fails Extensive search for a compatible partner Each company take equal responsibility for each task
True
Angel investors are wealthy individuals who seek high returns through private investments. Responses True False
written and orally
Business partnership agreements are made ___________. Responses written only orally only written and orally none of the above
How much time, effort and capital each partner will contribute
Business partnership agreements determine which of the following? Responses How the business will sell its products and/or services How the business will sell its products and/or services What methods of communication the partners will use to reach each other How much time, effort and capital each partner will contribute What the operational standards for running the business will be
The finances, actions and leadership of the business
Business partnership agreements hold partners responsible for which of the following? Responses Influencing environmental and government policies affecting the business The finances, actions and leadership of the business The well-being of each of the other partners Becoming involved in charitable organizations
Learn, adapt and adjust to others
Business partnerships must involve partners who are willing to do which of the following? Responses Educate and direct the other partners Learn, adapt and adjust to others Put aside their opinions and let their partner make all of the decisions Accept mistakes and recklessness
True
Capital is wealth in the form of money or property. Responses True False
A hazy line of authority, leading to disagreements
Each partner owning the same number of shares in a general partnership can often cause which of the following? Responses Two or more partners forcing one partner out of the business A hazy line of authority, leading to disagreements Confusion among partners, leading to mistakes Comradery and appreciation
Simplicity
Forming a limited partnerships does NOT help with which of the following? Responses Anonymity Simplicity Credibility Lawsuit protection
Investors
Groups of individuals who invest money in various types of companies in search of making a profit are known as which of the following? Responses Investors Investing entrepreneurs Capitalists Socialists
Unlike other forms, they place each partner under unlimited personal liability
How are general partnerships distinguished from other partnership forms? Responses Unlike other forms, they place each partner under unlimited personal liability Unlike other forms, they allow each partner to retain their own business independence Unlike other forms, they allow partners to leave the business with little difficulty Unlike other forms, they are used for a limited amount of time or for a single project
In the sale of the business to one of the partners
How do roughly 80 percent of all joint ventures end? Responses By dissolving By transforming to a different type of partnership In the sale of the business to one of the partners In the formation of a corporation
Trust, confidence and an ability to work through conflicts
If a business partnership is put forth correctly, which of the following should be developed? Responses Dependence and the need to always consult one another Reservation, apprehension and the use of much deliberation Trust, confidence and an ability to work through conflicts Harmony, congruence and the absence of disagreement
General partnership
If a joint venture continues after completing the single project it set out to accomplish, what is it considered? Responses General partnership Limited partnership Extended joint venture Strategic alliance
The partnership to dissolve
If unplanned for, the death, bankruptcy or departure of a member of a limited partnership causes which of the following? Responses Their share to be divided equally among the other partners The partnerships to vote on what happens to their share Their share to be awarded to the partner with the most invested The partnership to dissolve
Each partner receives an equal share of the profits
In general partnerships, how are profits divided among partners? Responses Each partner receives the percentage of profits equal to the percentage of investment made Partners receive no profits because all profits are reinvested in the business Each partner receives an equal share of the profits Partners negotiate and allocate profits however they see fit
False
Joint ventures are most common in the retail industry and most often involve cooperation between two local companies. Responses True False
General partners
Limited partnerships allow which of the following to use their expertise, make key decisions, and manage the business? Responses All partners Limited partners General partners The board of directors
True
One con of a general partnership is the hazy line of authority which can lead to disagreements. Responses True False
False
Patents are issued by state governments. Responses False True
False
Physical location of the business is a factor which should influence the type of ownership chosen. Responses False True
Specialized staff and technologies
Question Joint ventures allow for improved access to which of the following? Responses Secure investments Specialized staff and technologies Relationships with competitors Nontraditional marketing methods
A legal, binding agreement between two or more people who will be responsible for a single business
Question What is a business partnership? Responses A group of people authorized to act as a single entity and recognized as such by law A business which does not declare profit and instead utilizes all revenue in service to the public A legal, binding agreement between two or more people who will be responsible for a single business A relationship between two people who have a strong interpersonal bond than an association
Companies can seek new opportunities without the worry of losing everything
Risk-sharing in strategic alliances allows for which of the following? Responses Partners can create profits without committing too much time and labor Companies can seek new opportunities without the worry of losing everything Companies can change priorities without increased complexity or fear Partners have the opportunity for growth without any risk
strategic alliance
Starbucks® partnered with Barnes & Noble® to include coffee shops in book stores and books in coffee shops. Each business maintained independence, but provided resources to benefit both companies. This is an example of which type of partnership? Responses General partnership Joint venture Limited partnership Strategic alliance
Respond quickly to change and opportunity
Strategic alliances allow companies to do which of the following? Responses Gain greater results from the company's weaknesses Increase profits without growth or expansion Sacrifice business independence for increased performance Respond quickly to change and opportunity
A silent partner
Susan has invested in a limited partnership for profit, but does not partake in any operations and is not responsible for any debts incurred. She is known as which of the following? Responses A money partner A partner for finance A silent partner A partner of sorts
Contribute different qualities and skills to the company
Typically, business partnerships are made up of two or more people who do which of the following? Responses Compete against each other before joining forces Compete against each other before joining forces Want to own their own businesses but cannot afford to do it alone Spend time with each other socially before becoming business partners Contribute different qualities and skills to the company
About 75 percent
What percentage of joint ventures are international? Responses About 25 percent About 50 percent About 75 percent About 90 percent
Approval by all the partners
When a decision needs to be made in a general partnership, which of the following is required? Responses A vote by the board of directors Approval by all the partners Approval by the partner with the most invested Approval by any one of the partners
Copyright
Which of the following are protections provided to authors of original works such as literature? Responses Domain name Copyright Patent Trademark
Patent
Which of the following are the grants of intellectual property rights to the inventor? Responses Domain name Trademark Patent Copyright
Domain name
Which of the following are the unique names which identify Internet sites and businesses? Responses Copyright Patent Domain name Trademark
Corporation
Which of the following forms boards to act as governing bodies and is the most complicated form of business? Responses Partnership Sole proprietorship Corporation Franchise
Sale of assets
Which of the following is NOT a financing option suggested in the presentation? Responses Sale of assets Loans Investors Small Business Administration
Leadership
Which of the following is NOT a mentioned example of a resource a member of a strategic alliance would provide? Responses Project funding Expertise Leadership Distribution channels
Making the name difficult to pronounce
Which of the following is NOT a tip provided in the segment for naming a business? Responses Making the name short or indicate a short version Making the name difficult to pronounce Making the name descriptive of the business Making it easy to remember
Entrepreneurship
Which of the following is NOT a type of business ownership? Responses Franchise Sole proprietorship Entrepreneurship Partnership
Unlimited partnership
Which of the following is NOT one of the four types of business partnerships. Responses General partnership Unlimited partnership Joint venture Strategic alliance
Must follow the parent company's business structure
Which of the following is a disadvantage of a franchise? Responses Must follow the parent company's business structure Name recognition Shared advertising expenses Requires assistance from a parent company
Being taken in by a larger partner
Which of the following is a risk involved in entering a strategic alliance? Responses Being taken in by a larger partner The project failing and losing everything Losing rights to the assets contributed The project benefiting one partner and not the other(s)
Corporation
Which of the following is a type of business which operates as a separate legal entity? Responses Partnership Sole partnership Corporation Franchise
Limited partnership
Which of the following is defined as a business in which partners have an unequal share and liability in the business? Responses Sole Partnership Franchise partnership General partnership Limited partnership
Sole proprietorship
Which of the following is defined as a business which is owned and operated by one individual? Responses Partnership Sole proprietorship Entrepreneurship Franchise
Debt capital
Which of the following is money borrowed from a business or investment which must be repaid over time with interest? Investment capital Venture capital Equity capital Debt capital
Debt financing
Which of the following is often the only way for general partnerships to get large chunks of cash? Responses Business profits Equity financing Debt financing Government funding
Sole proprietorship
Which of the following is owned and operated by one individual? Responses Partnership Corporation Franchise Sole proprietorship
Finance
Which of the following is the money or other resources needed to pay for a part or parts of the company? Responses Finance Grant Purchasing cost Investment
Equity capital
Which of the following is the money raised by a business or investor in exchange for a share of ownership in the company? Responses Equity capital Debt capital Investment capital Venture capital
Microlending
Which of the following is the process of issuing loans in small amounts? Responses Microlending Granting Macrolending Leasing
Franchise
Which of the following is the right or license to sell a company's product or service at a designated location? Responses Franchise Corporation Sole proprietorship Partnership
Decision making is often slower and more complex
Which of the following is true of joint ventures when compared to other types of partnerships? Responses They are less time consuming and present less challenges Decision making is often slower and more complex They have lower capital costs and make money more quickly Each partner brings equal levels of expertise and investment
They are only responsible for the amount they have invested in the business
Which of the following is true of partners involved in a limited partnership? Responses They have equal share, liability and power They have equal share, liability and power They each have business independence, but come together for a limited amount of time for one specific project They have equal power but no liability They have equal power but no liability They are only responsible for the amount they have invested in the business
Joint venture
Which type of business partnership is used only for a limited period of time or for a single project? Responses General partnership Unlimited partnership Joint venture Limited partnership
General partnership
Which type of partnership uses the concept of unlimited personal liability for all partners involved? Responses General partnership Unlimited partnership Joint venture Strategic alliance
Trademark
Words, symbols, names or devices used to specify goods and differentiate one good from others is defining which of the following? Responses Trademark Patent Domain name Copyright
Trademarks
___________ are words, symbols, names or devices used to specify goods and differentiate one good from others. Responses Patents Licenses Trademarks Copyrights