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BUSN ch. 6 Test

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5 Written Questions

5 Matching Questions

  1. board of directors
  2. articles of incorporations
  3. franchisee
  4. limited liability partnership
  5. franchise
  1. a A form of partnership in which all partners have the right to participate in management and have limited liability for company debts.
  2. b The party in a franchise relationship that pays for the right to use resources supplied by the franchisor
  3. c a licensing agreement wherebu a franchisor allows franchisees to use its name, trademark, products, business methods and other property in exchange for monetary payments and other consideration
  4. d The document filed with a state government to establish the existence of a new corporation.
  5. e The individuals who are elected by stock- holders of a corporation to represent their interests

5 Multiple Choice Questions

  1. The contractual arrangement between a franchisor and franchisee that spells out the duties and responsibilities of both parties.
  2. A combination of firms at different stages in the production of a good or service
  3. The basic rules governing how a corporation is organized and how it conducts its business
  4. A corporation with a limited number of owners that operates under simpler, less formal rules than a C corporation.
  5. An organization that pools contributions from investors, clients, or depositors and uses these funds to buy stocks and other securities

5 True/False Questions

  1. C corporationThe most common type of business corporation, where ownership offers limited liability to all of its owners, also called stockholders.

          

  2. franchise disclosure document (FDD)The contractual arrangement between a franchisor and franchisee that spells out the duties and responsibilities of both parties.

          

  3. distributorshiptype of franchising arrangement in which the franchisor makes a product and licenses the franchisee to sell it.

          

  4. limited partnershipA partnership that includes at least one general partner who actively manages the company and accepts unlimited liability and one limited partner who gives up the right to actively manage the company in exchange for limited liability.

          

  5. general partnershipA partnership that includes at least one general partner who actively manages the company and accepts unlimited liability and one limited partner who gives up the right to actively manage the company in exchange for limited liability.

          

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