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