5 Written Questions

1. the situation in which a business owner is only responsible for the debts of the business up to the amount invested
2. the right to use a company name or business process in a specific way
3. the selling of a company's products in a foreign market without any special activity for that purpose
4. a business owned by its members and operated for their benefit
5. selling the right to use some intangible property for a fee or royalty

5 Matching Questions

1. charter
2. municipal corporation
3. partnership
4. net income or profit
5. direct exporting

1. a a company that actively seeks and conducts exporting
2. b the difference between money taken in and expenses
3. c an incorporated town or city organized to provide services for citizens rather than to make a profit
4. d the document granted by the state or federal government that allows a company to organize as a corporation
5. e a business that is owned by two or more people, but is not incorporated

5 Multiple Choice Questions

1. a share of corporate earnings paid to stockholders
   1. charter
   2. dividends
   3. franchise
   4. licensing
2. an independent company owned by a parent company
   1. wholly-owned subsidiary
   2. sole proprietorship
   3. limited liability
   4. unlimited liability
3. the purchase of land or other resources in a foreign country
   1. joint venture
   2. foreign direct investment
   3. direct exporting
   4. indirect exporting
4. groups created to provide a service and not concerned with making a profit
   1. indirect exporting
   2. nonprofit corporation
   3. corporation
   4. municipal corporation
5. a business that operates as a legal entity separate from any of the owners
   1. corporation
   2. partnership
   3. charter
   4. cooperative

5 True/False Questions

1. sole proprietorship → a business that is owned by two or more people, but is not incorporated

   True        False

2. management contract → an agreement under which a company sells only its management skills

   True        False

3. multinational company or corporation → an incorporated town or city organized to provide services for citizens rather than to make a profit

   True        False

4. unlimited liability → the situation in which a business owner's personal assets can be used to pay any debts of the business

   True        False

5. joint venture → the document granted by the state or federal government that allows a company to organize as a corporation

   True        False