Question 1

A franchisee is generally economically independent of the franchisor's integrated business system.

Accepted Answer

A) True 
 B)False

Question 2

Rico,the owner of Simply Sushi,is a sole proprietor.What are the chief characteristics,advantages,and disadvantages of this form of business organization? Rico wants to obtain additional capital to expand Simply Sushi,but she does not want to lose control of the firm.As a sole proprietor,what is her best option to attain these goals?​

Accepted Answer

A sole proprietorship is the simplest fo...

Question 3

Diane organized,and owns and operates,Reliable Roofing,a construction outfit,in the simplest form of business organization.This is​

Accepted Answer

A)  a partnership.
B)  a limited liability company.
C)  a corporation.
D)  a sole proprietorship.E) All of the above
F) C) and D)

Question 4

Chet is a partner in Diligent Accounting Service.Chet can inspect Diligent's books and records​

Accepted Answer

A)  in their entirety.
B)  only as the firm's management permits.
C)  only for a reasonable purpose.
D)  only in relation to Chet's capital contribution.E) A) and D)
F) B) and C)

Question 5

Cathy buys an exclusive territory in which she is authorized to set up a plant to make Delite Dairy products.After receiving the recipes,Cathy begins making Evie's-brand yogurt and other Delite products.This is​

Accepted Answer

A)  a chain-style franchise.
B)  a distributorship franchise.
C)  a manufacturing franchise.
D)  not a franchise.E) None of the above
F) C) and D)

Question 6

Any suit against the business or its employees can lead to unlimited personal liability for the owner of a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 7

Laura owns and operates Meditation Center without creating a separate business organization.She receives all the profits from the fees for the classes and the sales of the center's merchandise.This is most likely​

Accepted Answer

A)  a partnership.
B)  a franchise.
C)  a sole proprietorship.
D)  none of the choices.E) All of the above
F) A) and C)

Question 8

Without creating a separate business organization,Roy starts up Sole Savers,a new,pre-owned auto sales enterprise.Roy is​

Accepted Answer

A)  none of the choices.
B)  a partner.
C)  a franchisee.
D)  a sole proprietor.E) B) and C)
F) B) and D)

Question 9

A franchise agreement may allow the franchisee to cure a breach of the franchise agreement within a certain time so as to avoid termination.

Accepted Answer

A) True 
 B)False

Question 10

Fact Pattern 16-2
Bryn,Cornell,and Duke are general partners in Equity Lending,a consumer credit,mortgage,and investment firm.Their agreement states that it is a breach of the agreement for any partner to assign his or her interest to a creditor without the consent of the other partners.
-Refer to Fact Pattern 16-2.Cornell's assignment of his interest in Equity Lending to Financial Consultants Corporation results in​

Accepted Answer

A)  nothing with respect to Cornell or Equity Lending.
B)  the automatic termination of Equity Lending's legal existence.
C)  Cornell's liability for all of Equity Lending's debts.
D)  Cornell's wrongful dissociation and liability for any damages.E) C) and D)
F) A) and C)

Question 11

Any business-except a sole proprietorship-must comply with business registration and licensing requirements.

Accepted Answer

A) True 
 B)False

Question 12

Gwen and Hugo do business as Gwen & Hugo Civil Engineers,a partnership.This firm is governed by the Uniform Partnership Act​

Accepted Answer

A)  in the absence of an express agreement.
B)  in the absence of an implied agreement.
C)  only under an express agreement.
D)  under all circumstances.E) None of the above
F) B) and C)

Exam 16: Small Businesses and Franchises

Correct Answer
verified

Gwen and Hugo do business as Gwen & Hugo Civil Engineers,a partnership.This firm is governed by the Uniform Partnership Act

Correct Answer
verified

Correct Answer
verified
A sole proprietorship is the simplest fo...
View Answer

Laura owns and operates Meditation Center without creating a separate business organization.She receives all the profits from the fees for the classes and the sales of the center's merchandise.This is most likely

Correct Answer
verified

Chet is a partner in Diligent Accounting Service.Chet can inspect Diligent's books and records

Correct Answer
verified

Without creating a separate business organization,Roy starts up Sole Savers,a new,pre-owned auto sales enterprise.Roy is

Correct Answer
verified

Cathy buys an exclusive territory in which she is authorized to set up a plant to make Delite Dairy products.After receiving the recipes,Cathy begins making Evie's-brand yogurt and other Delite products.This is

Correct Answer
verified

A franchisee is generally economically independent of the franchisor's integrated business system.

Correct Answer
verified

Diane organized,and owns and operates,Reliable Roofing,a construction outfit,in the simplest form of business organization.This is

Correct Answer
verified

Any suit against the business or its employees can lead to unlimited personal liability for the owner of a sole proprietorship.

Correct Answer
verified

A franchise agreement may allow the franchisee to cure a breach of the franchise agreement within a certain time so as to avoid termination.

Correct Answer
verified

Any business-except a sole proprietorship-must comply with business registration and licensing requirements.

Correct Answer
verified

Exam 16: Small Businesses and Franchises

Correct AnswerverifiedShow Answer

Gwen and Hugo do business as Gwen & Hugo Civil Engineers,a partnership.This firm is governed by the Uniform Partnership Act​

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA sole proprietorship is the simplest fo...View AnswerShow Answer

Laura owns and operates Meditation Center without creating a separate business organization.She receives all the profits from the fees for the classes and the sales of the center's merchandise.This is most likely​

Correct AnswerverifiedShow Answer

Chet is a partner in Diligent Accounting Service.Chet can inspect Diligent's books and records​

Correct AnswerverifiedShow Answer

Without creating a separate business organization,Roy starts up Sole Savers,a new,pre-owned auto sales enterprise.Roy is​

Correct AnswerverifiedShow Answer

Cathy buys an exclusive territory in which she is authorized to set up a plant to make Delite Dairy products.After receiving the recipes,Cathy begins making Evie's-brand yogurt and other Delite products.This is​

Correct AnswerverifiedShow Answer

A franchisee is generally economically independent of the franchisor's integrated business system.

Correct AnswerverifiedShow Answer

Diane organized,and owns and operates,Reliable Roofing,a construction outfit,in the simplest form of business organization.This is​

Correct AnswerverifiedShow Answer

Any suit against the business or its employees can lead to unlimited personal liability for the owner of a sole proprietorship.

Correct AnswerverifiedShow Answer

A franchise agreement may allow the franchisee to cure a breach of the franchise agreement within a certain time so as to avoid termination.

Correct AnswerverifiedShow Answer

Any business-except a sole proprietorship-must comply with business registration and licensing requirements.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Gwen and Hugo do business as Gwen & Hugo Civil Engineers,a partnership.This firm is governed by the Uniform Partnership Act

Correct Answer
verified

Correct Answer
verified
A sole proprietorship is the simplest fo...
View Answer

Laura owns and operates Meditation Center without creating a separate business organization.She receives all the profits from the fees for the classes and the sales of the center's merchandise.This is most likely

Correct Answer
verified

Chet is a partner in Diligent Accounting Service.Chet can inspect Diligent's books and records

Correct Answer
verified

Without creating a separate business organization,Roy starts up Sole Savers,a new,pre-owned auto sales enterprise.Roy is

Correct Answer
verified

Cathy buys an exclusive territory in which she is authorized to set up a plant to make Delite Dairy products.After receiving the recipes,Cathy begins making Evie's-brand yogurt and other Delite products.This is

Correct Answer
verified

Correct Answer
verified

Diane organized,and owns and operates,Reliable Roofing,a construction outfit,in the simplest form of business organization.This is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified