Chapter 3 - Understanding Entrepreneurship, Small Business & Business Ownership
11 Questions
| Total Attempts: 926
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Questions and Answers
- 1.An arrangement that gives franchisees (buyers) the right to sell the product of ther 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.
T
- B.
F
- 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.
T
- B.
F
- 4.A general partner is when a partner who is activly involved in managing the firm and has unlimited liability.
- A.
T
- B.
F
- 5.A private corporation is a business whose stock is widely held and available for sale to the general public.
- A.
T
- B.
F
- 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.
T
- B.
F
- 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.
T
- B.
F
- 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.
T
- B.
F
- 11.Name 2 advantages and 2 disadvantages of being a sole proprietor.
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