Question 1

Spicy Sauces,Inc. ,and Tom's Bottling Plant have a manufacturing franchise arrangement.This involves the transfer of​

Accepted Answer

A)  a license.
B)  a trade name.
C)  the formula to make a certain product.
D)  the ownership of the business.E) A) and C)
F) C) and D)

Question 2

If no fixed duration of the partnership is specified,the partnership is a partnership at will,which means that it cannot be dissolved.

Accepted Answer

A) True 
 B)False

Question 3

Most states treat a partnership as an aggregate for most purposes.

Accepted Answer

A) True 
 B)False

Question 4

Most franchise contracts provide that notice of termination must be given.

Accepted Answer

A) True 
 B)False

Question 5

Stefani and Tyler agree in an exchange of e-mail to form a partnership to buy and sell real property.Their partnership agreement is legally binding​

Accepted Answer

A)  only if a copy of the agreement is filed in the appropriate state office.
B)  only if the agreement is printed in hard copy and signed by the parties.
C)  only if the parties exchange valid consideration.
D)  without more.E) All of the above
F) A) and B)

Question 6

Typically,the franchisee determines the territory to be served by the franchise.

Accepted Answer

A) True 
 B)False

Question 7

State deceptive trade practices acts apply to actions by franchisors.

Accepted Answer

A) True 
 B)False

Question 8

In winding up a general partnership,creditors are paid before partners receive their capital contributions.

Accepted Answer

A) True 
 B)False

Question 9

Rosa is a partner in Silver Dragon,a partnership consisting of the owners of a restaurant.Silver Dragon incurs debt for new dining tables and chairs.With respect to this debt,Rosa is​

Accepted Answer

A)  not liable.
B)  only liable to the amount of her capital contribution.
C)  only liable in proportion to the number of partners in the firm.
D)  personally liable to the full extent.E) B) and C)
F) C) and D)

Question 10

Some states require the termination of a franchise when there is no "good cause" for it to continue.

Accepted Answer

A) True 
 B)False

Question 11

A franchisor can mandate retail prices for the goods that a franchisee sells.

Accepted Answer

A) True 
 B)False

Question 12

Franchise agreements typically limit the franchisee's ability to sell the franchise to another party.

Accepted Answer

A) True 
 B)False

Question 13

Nina,the owner of Organic Farm,a sole proprietorship,wants to obtain additional capital to operate.This can be accomplished by​

Accepted Answer

A)  a bank loan.
B)  a Small Business Administration Loan.
C)  a state grant.
D)  any of the choices.E) None of the above
F) A) and B)

Question 14

Haute Dogs,Inc. ,sells a franchise to Irene's Cuisine,a lunch truck.Irene's Cuisine is​

Accepted Answer

A)  a franchisee.
B)  a franchisor.
C)  a partner.
D)  a principal.E) A) and C)
F) C) and D)

Question 15

A partner may not have the right to dissociate from the partnership.

Accepted Answer

A) True 
 B)False

Question 16

A majority of the states treat a partnership as an entity for most purposes.

Accepted Answer

A) True 
 B)False

Question 17

Instead of setting up a business to market her own products,Rita considers entering into a distributorship franchise with Sports Equipment Corporation.This involves the transfer of​

Accepted Answer

A)  a license.
B)  a trade name.
C)  the formula to make a certain product.
D)  the ownership of the business.E) None of the above
F) All of the above

Question 18

Limited legal liability generally is necessary for small businesses that wish to raise outside capital.

Accepted Answer

A) True 
 B)False

Question 19

Nora and Owen do business as Profit & Property,a real estate investment partnership.In acting on the firm's behalf in a deal with Village Mall,Nora takes advantage of an opportunity to make a secret profit on her own behalf.To her firm,Nora is liable for​

Accepted Answer

A)  breach of the duty of care.
B)  breach of contract.
C)  breach of the duty of loyalty.
D)  nothing.E) None of the above
F) C) and D)

Question 20

Riverside,a general partnership,operates a bait-and-tackle shop.Riverside has five partners.Steve has a one-third interest in the partnership.Each of the other partners has a one-sixth interest.With respect to management decisions​

Accepted Answer

A)  a majority of the partners must agree.
B)  Steve rules.
C)  the senior partner decides.
D)  four of the partners must agree.E) B) and C)
F) A) and B)

Exam 16: Small Businesses and Franchises

Nora and Owen do business as Profit & Property,a real estate investment partnership.In acting on the firm's behalf in a deal with Village Mall,Nora takes advantage of an opportunity to make a secret profit on her own behalf.To her firm,Nora is liable for​

Correct AnswerverifiedShow Answer

Nina,the owner of Organic Farm,a sole proprietorship,wants to obtain additional capital to operate.This can be accomplished by​

Correct AnswerverifiedShow Answer

Haute Dogs,Inc. ,sells a franchise to Irene's Cuisine,a lunch truck.Irene's Cuisine is​

Correct AnswerverifiedShow Answer

State deceptive trade practices acts apply to actions by franchisors.

Correct AnswerverifiedShow Answer

If no fixed duration of the partnership is specified,the partnership is a partnership at will,which means that it cannot be dissolved.

Correct AnswerverifiedShow Answer

Instead of setting up a business to market her own products,Rita considers entering into a distributorship franchise with Sports Equipment Corporation.This involves the transfer of​

Correct AnswerverifiedShow Answer

A franchisor can mandate retail prices for the goods that a franchisee sells.

Correct AnswerverifiedShow Answer

Riverside,a general partnership,operates a bait-and-tackle shop.Riverside has five partners.Steve has a one-third interest in the partnership.Each of the other partners has a one-sixth interest.With respect to management decisions​

Correct AnswerverifiedShow Answer

Franchise agreements typically limit the franchisee's ability to sell the franchise to another party.

Correct AnswerverifiedShow Answer

Spicy Sauces,Inc. ,and Tom's Bottling Plant have a manufacturing franchise arrangement.This involves the transfer of​

Correct AnswerverifiedShow Answer

Stefani and Tyler agree in an exchange of e-mail to form a partnership to buy and sell real property.Their partnership agreement is legally binding​

Correct AnswerverifiedShow Answer

A majority of the states treat a partnership as an entity for most purposes.

Correct AnswerverifiedShow Answer

Typically,the franchisee determines the territory to be served by the franchise.

Correct AnswerverifiedShow Answer

Most states treat a partnership as an aggregate for most purposes.

Correct AnswerverifiedShow Answer

Limited legal liability generally is necessary for small businesses that wish to raise outside capital.

Correct AnswerverifiedShow Answer

A partner may not have the right to dissociate from the partnership.

Correct AnswerverifiedShow Answer

Rosa is a partner in Silver Dragon,a partnership consisting of the owners of a restaurant.Silver Dragon incurs debt for new dining tables and chairs.With respect to this debt,Rosa is​

Correct AnswerverifiedShow Answer

Some states require the termination of a franchise when there is no "good cause" for it to continue.

Correct AnswerverifiedShow Answer

Most franchise contracts provide that notice of termination must be given.

Correct AnswerverifiedShow Answer

In winding up a general partnership,creditors are paid before partners receive their capital contributions.

Correct AnswerverifiedShow Answer

Nora and Owen do business as Profit & Property,a real estate investment partnership.In acting on the firm's behalf in a deal with Village Mall,Nora takes advantage of an opportunity to make a secret profit on her own behalf.To her firm,Nora is liable for

Correct Answer
verified

Nina,the owner of Organic Farm,a sole proprietorship,wants to obtain additional capital to operate.This can be accomplished by

Correct Answer
verified

Haute Dogs,Inc. ,sells a franchise to Irene's Cuisine,a lunch truck.Irene's Cuisine is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Instead of setting up a business to market her own products,Rita considers entering into a distributorship franchise with Sports Equipment Corporation.This involves the transfer of

Correct Answer
verified

Correct Answer
verified

Riverside,a general partnership,operates a bait-and-tackle shop.Riverside has five partners.Steve has a one-third interest in the partnership.Each of the other partners has a one-sixth interest.With respect to management decisions

Correct Answer
verified

Correct Answer
verified

Spicy Sauces,Inc. ,and Tom's Bottling Plant have a manufacturing franchise arrangement.This involves the transfer of

Correct Answer
verified

Stefani and Tyler agree in an exchange of e-mail to form a partnership to buy and sell real property.Their partnership agreement is legally binding

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Rosa is a partner in Silver Dragon,a partnership consisting of the owners of a restaurant.Silver Dragon incurs debt for new dining tables and chairs.With respect to this debt,Rosa is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified