BUS 100 Ch 6
They are made to pay an annual franchise tax in many states.
Which of the following is a characteristic of limited liability companies (LLCs)?
The franchisee has no flexibility as it is required to follow the franchisor's procedures to the letter.
Which of the following is a disadvantage of franchising?
The shareholders have limited liability in the firm.
Which of the following is an advantage of a C corporation?
Ease of formation
Which of the following is an advantage of sole proprietorship?
a business is considered a legal entity that is separate from its owners.
A corporation is a form of business ownership in which:
there is difficulty in withdrawing from the company.
A disadvantage of a general partnership is that:
is a voluntary agreement under which two or more people act as co-owners of a business for profit.
A partnership:
a single owner actively manages a company.
A sole proprietorship is a form of business ownership in which:
horizontal
One reason a firm would consider a _____ merger would be to increase size and market power in its industry.
board of directors
The individuals who are elected by stockholders of a corporation to represent their interests are known as _____.
