Chapter 5 How to form a business

International franchising is

a successful growth area for both small and large franchises.

partnerships refer to more than one owner. A limited partnership

consists of general partners and limited partners. At least one of each

in a blank members democratically control the business my electing

cooperative

Joel and Mike would like to start a new business selling a product

corporation

When your profitable franchise falls simply because of other simialir franchise have failed . This is known as the

cottail effect

you inherited 500 shares of IBM from your great aunt mabel.

double taxation

When Betsy Blackwell bought a mighty maid franchise she became a

franchisee

a few years ago, in order to gain market share, blackboard

horizontal merger

If the employees of San Simeon Company successfully borrowed a large sum of money and purchased the firm from its current owners, we would call this event a ___________.

leveraged buyout

When Luke, Larry, and Lance

limited liability

At sound off! a store that buys CD's

limited partnership

When Beck joined his uncles oil exploration company in east Texas

master limited partnership

Advantages of ________ include reduced start-up fees and no territory

online franchising

when going into a partnership, you should always

put all terms of the partnership into writing in a partnership agreement

One of the key advantages of the franchise

receiving management and marketing expertise from the franchise

in his search for a franchised business that would satisfy his passion

royalty

when gene started his window washing business

sole proprietorship

which form of business ownership is the most common in the United States?

sole proprietorship

The owners of a corporation

stockholders

A firm management purchases all the issued and outstanding stock of the firm and takes the company of the stock market. The management of this company engaged in

taking the firm private

which of following lists characteristics typical of a c cooperation

taxed separately from its owners who also enjoy limited liability

unlimited liability

the business is responsible for debt it incurs. If the business cannot pay its bills, the debt burden transfers to the owner(s) and they are liable for the debt

A brother and sister team, Franco and Julietta

the fact they both shared unlimited liability, and if one or the other failed to meet their financial commitment, the other partner would be liable for all debts

flexible fittings was a small manufacturing company that made shut off

vertical merger

twenty years ago your parents invested in apple

your parents will only lose the value of their shares