← BUSN ch. 6 Test
5 Written Questions
5 Matching Questions
- articles of incorporations
- franchise agreement
- limited partnership
- sole proprietorship
- a The contractual arrangement between a franchisor and franchisee that spells out the duties and responsibilities of both parties.
- b An owner of a corporation.
- c A form of business ownership with a single owner who usually actively manages the company
- d A 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.
- e The document filed with a state government to establish the existence of a new corporation.
5 Multiple Choice Questions
- A form of business ownership that offers both limited liability to its owners and flexible tax treatment
- A corporate restructuring in which one firm buys another.
- A detailed description of all aspects of a franchise that the franchisor must provide to the franchisee at least 14 calendar days before the franchise agreement is signed.
- The individuals who are elected by stock- holders of a corporation to represent their interests
- The basic rules governing how a corporation is organized and how it conducts its business
5 True/False Questions
franchise → The party in a franchise relationship that pays for the right to use resources supplied by the franchisor
conglomerate merger → A combination of two firms that are in the same industry
partnership → A corporate restructuring that occurs when two formerly independent business entities combine to form a new organization.
vertical merger → A combination of firms at different stages in the production of a good or service
general partnership → A 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.