Question Details

BUS 402 Week 3 quiz 
•	Question 1

	
	The ________ is a separate legal entity apart from its owners and may engage in business, make contracts, sue and be sued, and pay taxes.			
	
			
•	Question 2

	
	All partnerships must have:			
	
			
•	Question 3

	
	A limited partnership is a modification of a(n) ________ form of ownership.			
	
			
•	Question 4

	
	The ________ is a document that states in writing all of the terms of operating the partnership for the protection of each partner involved.			
	
			
•	Question 5

	
	If a partnership is formed without an agreement, the partnership is automatically subject to the:			
	
			
•	Question 6

	
	The most common form of business ownership is the:			
	
			
•	Question 7

	
	A partnership is:			
	
			
•	Question 8

	
	In a joint venture, individuals join together in co-ownership for:			
	
			
•	Question 9

	
	A limited liability company is formed under:			
	
			
•	Question 10

	
	________ corporations have shares that are controlled by a relatively small number of people - family members, relatives, or friends.			
	
			
•	Question 11

	
	Common ownership interest in a business, sharing profits (or losses) of a business, and the right to participate in managing the operations of the business are characteristics of a(n):			
	
			
•	Question 12

	
	Shares the corporation itself owns are called:			
	
			
•	Question 13

	
	Which of the following is a disadvantage of the corporation form of ownership?			
	
			
•	Question 14

	
	The corporate form of ownership has a significant advantage in that:			
	
			
•	Question 15

	
	The key to choosing the "right" form of ownership is:			
	
			
•	Question 16

	
	________ franchising involves the owner of an existing business becoming a franchisee to gain the advantage of name recognition.			
	
			
•	Question 17

	
	In franchising, ________ pay fees and royalties to a ________ in return for the right to sell its products or services under the franchiser's trade name and often to use its business format and system.			
	
			
•	Question 18

	
	Typically, the franchiser controls are very tight on what the franchisee:			
	
			
•	Question 19

	
	In view of the cause of most new business failures, probably the most valuable service provided franchisees by the franchiser is:			
	
			
•	Question 20

	Establishing a Mrs. Fields Cookies franchise inside a Hardees fast-food franchise is an example of ________ franchising.			
	
			
•	Question 21

	
	When buying a franchise, the potential franchisee should first:			
	
			
•	Question 22

	
	The payment the franchisee makes to the franchiser based on gross sales is:			
	
			
•	Question 23

	
	________ franchising exists when a franchisee is licensed to sell specific products under the franchiser's brand name through a selective distribution system.			
	
			
•	Question 24

	
	In franchising, the reputation of the franchiser is dependent on:			
	
			
•	Question 25

	
	When the franchisee has the right to establish a semi-independent organization in a particular territory to recruit, sell, and support other franchises, it is called a ________ franchise.			
	
			
•	Question 26

	
	To protect investors from unscrupulous franchisers, the regulatory body is the:			
	
			
•	Question 27

	
	The ________ requires all franchisers to disclose detailed information on their operations at the first personal meeting or at least fourteen days before a franchise contract is signed or any money is paid.			
	
			
•	Question 28

	
	Another term for cobranding franchising is:			
	
			
•	Question 29

	
	The Uniform Franchise Offering Circular is now called the:			
	
			
•	Question 30

	
	The most expensive franchises in terms of total investment are: