Bus 160 ch 5

What can be said about the survival rate of partnerships as compared to sole proprietorships

Partnerships are more likely to succeed

If you start and manage a landscaping business on your own, you have likley started a

Sole Proprietorship

The easiest type of business entity to form is a

Sole Proprietorship

unlimited liability as it relates to sole proprietorships is the risk of

The loss of personal assets

A state charted legal entity with authority to act and have liabillity separate from its owner is a

corporation

A state charted legal entity with authority to act and have liabillity separate from its owners is a

corporation

An agreement that gives a business the right to use a business's name and sell a product or service in a given area is a

franchise

A partnership where all owners share in operating the business and in assuming unlimited for the business's debts is a

general partnership

Low overhead costs are an advantage of which type of business

home-based businesses

Gathering leads on a company website, selling products and keeping up to date on news via email, and chat rooms all serve as examples of using (BLANK) to assist franchisees and customers

technology

Many people do not like working for someone, so being your own (BLANK) is an advantage of sole proprietorships

boss

A corporation is formall formed with

bylaws and union formation

The result of two firms joining to form one is called a

merger

Many franchises are expanding internationally because

there are large new markets available

Which are attributes of a conventional corporation

1. Corporate liabillity is separate from owners 2. it is state chartered 3. it is a legal entity

In terms of operating flexibility, what are three things that LLCs are not required to do?

1. File written resolutions 2. keep minutes 3. hold annual meetings.

which of the following are true about the advantages and disadvantges of being a franchise owner

1. Having a nationally recongnized name for your business in a franchise can help with marketing and awareness 2. While the upfront costs of a franchise may be steep, a franchise has a better chance of succeeding that starting a business from scratch

Which are considered disadvantages

1. Initial Cost 2. Double Taxation 3. Extensive paperwork

What are two reasons that franchises are attractive to minority populations

1. They provide personal ownership of a business 2. some offer financial support to aspiring business owners

Because of the difficulty in ending a partnership, decisions regarding which two areas should be spelled out in a partnership agreement

1. When a partner can retire 2. How to distribute assets

what are two of the disadvantages of a corporation

1. double taxation 2. cost of forming a corporation.

What are attributes of a conventional corporation

1. it is state chartered 2. corporate liabillity is seoarate from owners 3. it is a legal entity

What are two advantages of home-based franchises

1. low overhead expenses 2. relief from the stress of commuting

Many brick and mortar franchisees are using (BLANK) to expand their businesses online to lower costs and better meet the need of their customers

1. technology 2. websites

Which of the following are true regarding the process of forming a corporation

1. the bylaws of the corpation describe how the firm is to be operated 2. the articles of incorporation are usally filed in the state in which the company will be in corporated

What two items are delineated in a franchise agreement

1. the right to use a specific business' name 2. the right to sell a business' products in a given territory

Which country is the most popular target for U.S.-based franchies to enter the global market

Canda

If producers, comsumers, or workers with similar needs pool their resources for mutual gain, they have created a franchise.

False

Partnership are less likley to survive that Sole proprietorships

False

One of the most imortant advantages of the sole proprietor form of ownership is that a business owner

Finds it easier to start and end the business

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

Because of the poor publicity at a fellow franchise location, you notice that sales at your location have decreased. The impact of the poor publicity on your company is referred to as

The coattail effect

While you are still your own boss as a franchise owner, your territory or selling boundaries may be regulated by the franchisor

True

A franchise owner will experience the coattail effect when

a fellow franchisee does something that has an impact on growth and profitabillity

a unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships is

an S corporation

an advantage of the separation of ownership from management in coporations is that the company cane raise money from invetors but the investors

are not involved in daily operations

A business owned and controlled through pooled recources by the people who use it is a

cooperative

Many minority business owners perfer the (BLANK) form of business ownership because it offers business conections and support

franchise

Mark, Cal, and Aidan have decided to form a business where all owners will share in operating the business and in assuming liability for the business debts. They are most likely forming a(n)

general partnership

An S corporation has the liabillity protections of a corporation but is taxed

like a partnership or sole proprietorship

Two software conpanies each hold a small percentage of the market. To gain recongnition and increase market share, these companies decide to join together to form one company. This move is know as

merger

termination of a partnership is diffcult without (BLANK) agreement

partnership

If your company's debt or damages are solely your responsibillity you could be experiencing the disadvantage associated with owning a sole proprietorship called

unlimited liabillity