Question 1

Ellen has just been granted a franchise from Tim Horton's.The new business will be set up as a:

Accepted Answer

A)  sole proprietorship
B)  corporation
C)  partnership
D)  any form of business she choosesE) B) and C)
F) C) and D)

Question 2

Jim wants to start a business.He is attracted by the idea of being his own boss,and wants to get started with a minimum of expense and hassle.He is very confident in his abilities,so he is not particularly worried about financial risks.All of these factors suggest that Jim would favour starting his business as a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 3

Global franchising offers:

Accepted Answer

A)  few opportunities for Canadian investors.
B)  American firms the opportunity to market goods overseas without any need to adjust for cultural differences.
C)  opportunities for both large and small franchises.
D)  opportunities for the largest franchise systems,but not small ones.E) All of the above
F) A) and B)

Question 4

Todd and Jorge have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails.One way for both Todd and Jorge to avoid this risk would be to organize their firm as a:

Accepted Answer

A)  sole proprietorship.
B)  general partnership.
C)  limited partnership.
D)  corporation.E) A) and D)
F) A) and C)

Question 5

Mehdi operates a sole proprietorship,but he is in poor health and may be unable to continue running the business.If Mehdi becomes incapacitated,his business:

Accepted Answer

A)  automatically continues under new management as a sole proprietorship.
B)  automatically converts into a public corporation with stock sold to interested investors.
C)  becomes the property of the most senior employee who wishes to continue operating the firm.
D)  ceases to exist unless sold or taken over by Mehdi's heirs.E) None of the above
F) A) and B)

Question 6

Limited partnerships are just like general partnerships,except that they are organized to operate as a growing concern for only a limited time period.

Accepted Answer

A) True 
 B)False

Question 7

Few people today start their own business.

Accepted Answer

A) True 
 B)False

Question 8

Most provinces have legal restrictions that prevent individuals from incorporating.

Accepted Answer

A) True 
 B)False

Question 9

An owner of a corporation is known as a:

Accepted Answer

A)  limited partner.
B)  shareholder.
C)  director.
D)  general partner.E) C) and D)
F) A) and B)

Question 10

The legal authorization for a company to use the corporate format is known as the articles of incorporation.

Accepted Answer

A) True 
 B)False

Question 11

When comparing partnerships to sole proprietorships,an advantage of partnerships is that they:

Accepted Answer

A)  cost less to organize.
B)  limited liability for the general partner.
C)  are easier to terminate.
D)  give the firm a stronger financial foundation.E) C) and D)
F) A) and B)

Question 12

Which of the following statements is true about franchisors and franchisee-sponsored web sites?

Accepted Answer

A)  few brick-and-mortar franchises have expanded their business online.
B)  franchisees can do as they please on their own web sites.
C)  franchisee web sales can hurt the franchisor financially.
D)  many franchisors prohibit them.E) A) and B)
F) C) and D)

Question 13

In today's economy,only large business enterprises should operate as corporations.

Accepted Answer

A) True 
 B)False

Question 14

Compared to sole proprietorships,partnerships offer the advantage of shared management and pooled knowledge.

Accepted Answer

A) True 
 B)False

Question 15

The first step in starting a sole proprietorship is to fill out a proprietorship charter application form and file it with the provincial government.

Accepted Answer

A) True 
 B)False

Question 16

A corporation can raise financial capital by selling shares of stock to interested investors.

Accepted Answer

A) True 
 B)False

Exam 6: Forms of Business Ownership

Most provinces have legal restrictions that prevent individuals from incorporating.

Correct Answer
verified

Ellen has just been granted a franchise from Tim Horton's.The new business will be set up as a:

Correct Answer
verified

Compared to sole proprietorships,partnerships offer the advantage of shared management and pooled knowledge.

Correct Answer
verified

The first step in starting a sole proprietorship is to fill out a proprietorship charter application form and file it with the provincial government.

Correct Answer
verified

An owner of a corporation is known as a:

Correct Answer
verified

When comparing partnerships to sole proprietorships,an advantage of partnerships is that they:

Correct Answer
verified

In today's economy,only large business enterprises should operate as corporations.

Correct Answer
verified

Correct Answer
verified

Mehdi operates a sole proprietorship,but he is in poor health and may be unable to continue running the business.If Mehdi becomes incapacitated,his business:

Correct Answer
verified

Global franchising offers:

Correct Answer
verified

Limited partnerships are just like general partnerships,except that they are organized to operate as a growing concern for only a limited time period.

Correct Answer
verified

A corporation can raise financial capital by selling shares of stock to interested investors.

Correct Answer
verified

The legal authorization for a company to use the corporate format is known as the articles of incorporation.

Correct Answer
verified

Todd and Jorge have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails.One way for both Todd and Jorge to avoid this risk would be to organize their firm as a:

Correct Answer
verified

Few people today start their own business.

Correct Answer
verified

Which of the following statements is true about franchisors and franchisee-sponsored web sites?

Correct Answer
verified

Exam 6: Forms of Business Ownership

Most provinces have legal restrictions that prevent individuals from incorporating.

Correct AnswerverifiedShow Answer

Ellen has just been granted a franchise from Tim Horton's.The new business will be set up as a:

Correct AnswerverifiedShow Answer

Compared to sole proprietorships,partnerships offer the advantage of shared management and pooled knowledge.

Correct AnswerverifiedShow Answer

The first step in starting a sole proprietorship is to fill out a proprietorship charter application form and file it with the provincial government.

Correct AnswerverifiedShow Answer

An owner of a corporation is known as a:

Correct AnswerverifiedShow Answer

When comparing partnerships to sole proprietorships,an advantage of partnerships is that they:

Correct AnswerverifiedShow Answer

In today's economy,only large business enterprises should operate as corporations.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Mehdi operates a sole proprietorship,but he is in poor health and may be unable to continue running the business.If Mehdi becomes incapacitated,his business:

Correct AnswerverifiedShow Answer

Global franchising offers:

Correct AnswerverifiedShow Answer

Limited partnerships are just like general partnerships,except that they are organized to operate as a growing concern for only a limited time period.

Correct AnswerverifiedShow Answer

A corporation can raise financial capital by selling shares of stock to interested investors.

Correct AnswerverifiedShow Answer

The legal authorization for a company to use the corporate format is known as the articles of incorporation.

Correct AnswerverifiedShow Answer

Todd and Jorge have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails.One way for both Todd and Jorge to avoid this risk would be to organize their firm as a:

Correct AnswerverifiedShow Answer

Few people today start their own business.

Correct AnswerverifiedShow Answer

Which of the following statements is true about franchisors and franchisee-sponsored web sites?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified