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