5 Written questions
5 Matching questions
- conglomerate merger
- limited liability partnership
- limited liability
- S corporation
- a the business entity in a franchise relationship that allows others to operate their business using resources it supplies in exchange for money and other considerations
- b When owners are not personally liable for claims against their firm. Limited liability owners may lose their investment in the company, but their personal assets are protected.
- c A form of partnership in which all partners have the right to participate in management and have limited liability for company debts.
- d A combination of two firms that are in unrelated industries.
- e A form of corporation that avoids double taxation by having its income taxed as if it were a partnership.
5 Multiple choice questions
- A form of business ownership with a single owner who usually actively manages the company
- The transfer of total or partial ownership of some of a firm's assets to investors or to another company
- A voluntary agreement under which two or more people act as co-owners of a business for profit.
- The most common type of business corporation, where ownership offers limited liability to all of its owners, also called stockholders.
- 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.
5 True/False questions
vertical merger → A combination of firms at different stages in the production of a good or service
statutory close corporation → A corporation that does not seek to earn a profit and differs in several fundamental respects from general corporations.
limited 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.
nonprofit corporation → The most common type of business corporation, where ownership offers limited liability to all of its owners, also called stockholders.
business format franchise → A broad franchise agreement in which the franchisee pays for the right to use the name, trademark, and business and production methods of the franchisor.