ch 5

Which of following are true about the advantages and disadvantages of being a franchise owner:

Having a nationally recognized name for your business in a franchise can help with marketing and awareness, While the upfront costs of a franchise may be steep, a franchise has a better chance of succeeding than starting a business from scratch

hich of the following are true regarding the process of forming a corporation.

The bylaws of the corporation describe how the firm is to be operated, The articles of incorporation must be filed in the state in which the company will be incorporated

a corporation is

a legal entity

One company's purchase of the property and obligations of another is called a(n):

acquisition

An advantage of the separation of ownership from management in corporations is that the company can raise money from investors but the investors

are not involved i daily operations

One company's purchase of the property and obligations of another company is a(

buyout

In addition to the articles of incorporation, a corporation has ______, which describe how the firm is to be operated from both legal and managerial points of view.

bylaws

a partnership agreement

can spell out the requirements of terminating a partnership.

The actions of a fellow franchisee will affect your franchise. This is known as the

coattail effect

When producers, consumers, or workers with similar needs pool their resources for mutual gain, they start a(n):

cooperative

A state-chartered legal entity with authority to act and have liability separate from its owners is a

corporation

Partnerships are less likely to survive than sole proprietorships

false

Ed has decided to purchase and follow a business format by becoming a franchisee. The _______ he will sign gives him the right to use the business name and sell the products of the firm.

franchise agreement

LLC's are considered to have operational flexibility because while they must submit articles of organization, they are not required to:

keep minutes or hold annual meetings

Home-based franchises have many advantages, such as:

low overhead expenses, relief from the stress of commuting

Franchises are expanding internationally to access additional -----that have new customers and to increase their profit potential.

markets

advantages of partnerships

more financial resources, shared management and pooled complementary skills and knowledge, linger survival, no special taxes

An LLC submits a written operating agreement, similar to a(n) -----agreement, describing how the company is to be operated.

partnership

Termination of a partnership is difficult without a(n) ______ agreement.

partnership

Unlimited liability as it relates to sole proprietorships is the risk of loss of _____ assets of the buesiness

personal

A unique government creation that looks like a corporation but is taxed like a sole proprietorship or partnership is called a

s corporation

A business that is owned and managed by one person is a(

sole proprietorship

who are separate from the managers and employees of the firm because they are not actively involved in the operations of the firm.

stockholders

An advantage of partnerships is a longer ____- rate than sole proprietorships, because they become more disciplined and the business's life is based on all the partners.

survival

Many brick and mortar franchisees are using ______ to expand their businesses online to lower costs and better meet the needs of their customers. Multiple select question.

technology e-commerce websites

The impact of the poor publicity on your company is referred to as Multiple choice question.

the coattail effect

One of the most notable advantages of an online franchise is

there is no brick-and-mortar real estate cost.

Franchises are attractive to minority populations because:

they provide personal ownership of a business, some offer financial support to aspiring business owners

In a sole proprietorship, any debts or damages incurred by the business are your personal debts and you must pay them. This disadvantage is known as

unlimited liability

disadvantages of partnerships

unlimited liability, division of profits disagreements among partnerships