Ch. 5 business

minority

----- owned businesses are growing at more than the national rate.

cooperative

A business owned and controlled through pooled resources by the people who use it is a(n) ______.

Sole Proprietorship

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

articles of incorporation and bylaws

A corporation is formally formed with:

overhead

A key advantage of a home-based franchise is low -----costs, which can be ongoing. These are the costs associated with rent, utilities, and other fixed costs.

double taxation

A major disadvantage of the corporate form deals with the tax situation called

agreement

A partnership ------ can spell out the requirements of terminating a partnership.

general partnership

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

S cooperation

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

diverse franchisee

About 20 percent of franchises are owned by African Americans, Latinos, Asians, and Native Americans. Franchisors are becoming more focused on recruiting

being your own boss

Advantage of sole proprieotrship

online franchisees can compete in world markets no upfront fee may be required franchisees pay only a set monthly fee

Advantages of starting an online franchise are:

like a partnership or sole proprietorship

An S corporation has the liability protections of a corporation but is taxed:

have little say in daily operations

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

franchise

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(n):

the coattail effect

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

franchise agreement

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.

finding worth of retirers share, and how to distribute taxes

Ending a partnership can be difficult because of problems deciding:

offer fianncial support to aspiring business owners, and provide personal ownership of business

Franchises are attractive to minority populations because:

market

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

tecnology

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 ----- to assist franchisees and customers.

unlimited liability

If your company debts or damages are solely your responsibility you could be experiencing the disadvantage associated with owning a sole proprietorship called

liability

In a general partnership, all partners share the responsibility for operating the business and assume ---- for businesses debts

bylaws

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.

keep minutes or hold annual meetings or file written solutions

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

acquisition

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

acquisition

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

finds it easier to start and end a business

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

no brick-and-mortar realestate fees

One of the most notable advantages of an online franchise is

stock, board of directs, managers, employees

Rank the order in which members of a corporation are chosen in order to separate ownership from management. Start at the top of the managerial hierarchy.

separate

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

sole proprietorships

Studies have indicated that partnerships are four times more likely to succeed than:

Partnership

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

coattail effect

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

state chartered, legal entity, and corporate liability seperate from its owners

The attributes of a conventional corporation include that:

Sole Proprietorship

The easiest type of business entity to form is a

merger

The result of two firms joining to form one is called a(n):

personal

Unlimited liability as it relates to sole proprietorships is the risk of loss of -------- assets beyond the assets of the business.

merger

When two firms join together to form one new company, it is called a(n)

double taxation, extensive paperwork, initial cost

Which are considered disadvantages of incorporating?

true

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

entity

corporation is a legal ------ with authority to act and have liability separate from its owners.