Question 1

List some of the economic sectors where you find co-operatives in Canada.

Accepted Answer

Some of the largest sectors are: -Financ...

Question 2

Compared to sole proprietorships,an advantage of partnerships is their ability to obtain more financial resources.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements about the operation of a corporation is correct?

Accepted Answer

A)  A corporation receives its charter from the federal or a provincial government.
B)  A corporate charter automatically expires in 99 years and must be renewed if the corporation wants to remain in business.
C)  Owners of a corporation have unlimited liability for any claims against their company.
D)  A corporation tends to be much easier to set up than a sole proprietorship or partnership.E) None of the above
F) All of the above

Question 4

A(n) ___________ is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory.

Accepted Answer

A)  conditional grant
B)  franchise agreement
C)  trade contract
D)  extended ownership agreementE) All of the above
F) B) and C)

Question 5

Co-ops distribute their profits to members as a reduction in members' costs.These profits are non-taxable.

Accepted Answer

A) True 
 B)False

Question 6

The limited liability provided to limited partners means that they are not responsible for the debts of the business beyond:

Accepted Answer

A)  the firm's total assets.
B)  the amount they have invested in the company.
C)  the percentage of profits they are entitled to earn.
D)  their total personal assets.E) B) and C)
F) A) and B)

Question 7

One advantage of a partnership is that there is a simple process for partners to terminate their business.

Accepted Answer

A) True 
 B)False

Question 8

One of the strengths of the sole proprietorship is its ability to sustain rapid growth by raising large amounts of financial resources.

Accepted Answer

A) True 
 B)False

Question 9

In a limited liability partnership,each partner's risk of losing personal assets is:

Accepted Answer

A)  limited to the amount that partner invested in the company.
B)  limited to losses that result from their own acts and omissions and the acts and omissions of those who work under their supervision.
C)  determined entirely by the maximum loss provision established by the articles of co-partnership.
D)  nonexistent.E) A) and B)
F) B) and C)

Question 10

The result of two firms combining to form one company is called a:

Accepted Answer

A)  joint tenancy.
B)  tenancy in common.
C)  merger.
D)  voluntary directorship.E) All of the above
F) None of the above

Question 11

Marie recently purchased 100 shares of stock in the McBun Development Corporation.Marie has become a(n) _____________ of McBun Development.

Accepted Answer

A)  owner
B)  manager
C)  creditor
D)  partnerE) B) and C)
F) A) and D)

Question 12

Which of the following is an advantage of a sole proprietorship?

Accepted Answer

A)  longer survival
B)  no special taxes
C)  unlimited liability
D)  limited liabilityE) None of the above
F) B) and D) B

Question 13

Wilson Office Supplies has announced plans to purchase all of the property and assume the obligations of Brown & Craft Stationery,Inc.,a firm that has been one of its major competitors.Wilson's plans are an example of a vertical merger.

Accepted Answer

A) True 
 B)False  False

Question 14

Another word for debt is _______.

Accepted Answer

A)  Liability
B)  Partnerships
C)  Sole proprietorships
D)  Limited liability partnershipsE) B) and C)
F) A) and D)

Question 15

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)  general partnership.
B)  limited partnership.
C)  corporation.
D)  sole proprietorship.E) All of the above
F) None of the above

Question 16

A leveraged buyout is an attempt by top management to gain control of a company by issuing a large amount of new stock.

Accepted Answer

A) True 
 B)False

Question 17

All of the partners in a general partnership have limited liability for the debts of their firm.

Accepted Answer

A) True 
 B)False

Question 18

People who form co-operatives:

Accepted Answer

A)  believe the government should play a larger role in the economy.
B)  dislike the notion of having owners,managers,and customers as separate individuals with separate goals.
C)  see competitive behaviour as the key to ensuring rapid economic growth.
D)  want to find a way to supply basic necessities free of charge to everyone.E) C) and D)
F) B) and C)

Question 19

An acquisition is when one company buys the property and obligations of another company.

Accepted Answer

A) True 
 B)False  True

Question 20

A major advantage of sole proprietorships is that an owner has limited liability for the debts of his or her business.

Accepted Answer

A) True 
 B)False

Exam 6: Forms of Business Ownership

List some of the economic sectors where you find co-operatives in Canada.

Correct AnswerverifiedSome of the largest sectors are: -Financ...View AnswerShow Answer

Compared to sole proprietorships,an advantage of partnerships is their ability to obtain more financial resources.

Correct AnswerverifiedShow Answer

Which of the following statements about the operation of a corporation is correct?

Correct AnswerverifiedShow Answer

A(n) ___________ is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory.

Correct AnswerverifiedShow Answer

Co-ops distribute their profits to members as a reduction in members' costs.These profits are non-taxable.

Correct AnswerverifiedShow Answer

The limited liability provided to limited partners means that they are not responsible for the debts of the business beyond:

Correct AnswerverifiedShow Answer

One advantage of a partnership is that there is a simple process for partners to terminate their business.

Correct AnswerverifiedShow Answer

One of the strengths of the sole proprietorship is its ability to sustain rapid growth by raising large amounts of financial resources.

Correct AnswerverifiedShow Answer

In a limited liability partnership,each partner's risk of losing personal assets is:

Correct AnswerverifiedShow Answer

The result of two firms combining to form one company is called a:

Correct AnswerverifiedShow Answer

Marie recently purchased 100 shares of stock in the McBun Development Corporation.Marie has become a(n) _____________ of McBun Development.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of a sole proprietorship?

Correct AnswerverifiedB

Wilson Office Supplies has announced plans to purchase all of the property and assume the obligations of Brown & Craft Stationery,Inc.,a firm that has been one of its major competitors.Wilson's plans are an example of a vertical merger.

Correct AnswerverifiedFalse

Another word for debt is _______.

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

A leveraged buyout is an attempt by top management to gain control of a company by issuing a large amount of new stock.

Correct AnswerverifiedShow Answer

All of the partners in a general partnership have limited liability for the debts of their firm.

Correct AnswerverifiedShow Answer

People who form co-operatives:

Correct AnswerverifiedShow Answer

An acquisition is when one company buys the property and obligations of another company.

Correct AnswerverifiedTrue

A major advantage of sole proprietorships is that an owner has limited liability for the debts of his or her business.

Correct AnswerverifiedShow Answer

Correct Answer
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Some of the largest sectors are: -Financ...
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B

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False

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True

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