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