Quiz: Entrepreneurship And Business Ownership

10 Questions | By Golddude1000 | Last updated: Mar 22, 2022 | Total Attempts: 1675

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Quiz: Entrepreneurship And Business Ownership - Quiz

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Questions and Answers

1.

An arrangement that gives franchisees (buyers) the right to sell the product of the franchiser is called:
- A.
  
  Franchise
- B.
  
  Franchising agreement
- C.
  
  Incorporation
- D.
  
  Venture business
2.

A partnership is when a business with two or more owners who share in the operation of the firm and in financial responsibility for the firm's debts.
- A.
  
  True
- B.
  
  False
3.

A limited partner is when a partner who generally does not participate actively in the business and whose liability is limited to the amount invested in the partnership
- A.
  
  True
- B.
  
  False
4.

A general partner is when a partner who is actively involved in managing the firm and has unlimited liability.
- A.
  
  True
- B.
  
  False
5.

A private corporation is a business whose stock is widely held and available for sale to the general public.
- A.
  
  True
- B.
  
  False
6.

A public corporation is a business whose stock is held by a small group of individuals and is not usually available for sale to the general public.
- A.
  
  True
- B.
  
  False
7.

Stockholders or shareholders are:
- A.
  
  The investors
- B.
  
  Those own shares of a stock in a company
- C.
  
  The directors
- D.
  
  All of the above
- E.
  
  A & C
8.

Limited liability is limited to the investors' investments in the corporation; courts cannot touch the personal assets of investors in the event that the corporation goes bankrupt.
- A.
  
  True
- B.
  
  False
9.

A group of individuals elected by a firm's shareholders and charged with overseeing and taking legal responsibility for the firm's actions:
- A.
  
  Board of directors
- B.
  
  Chief executive officer
- C.
  
  Managers
10.

A co-operative is an organization that is formed to benefit its owners in the form of reduced prices andéor the distribution of surpluses at year-end. An example of co-operative is housing co-op
- A.
  
  True
- B.
  
  False