Business Ownership Types Lesson Plans Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which tactic would a target company use to stall an acquisition in hopes that a better company comes along to buy it?

Question 2 2. Which of the following describes the income tax treatment for a sole proprietorship?

Question 3 3. What's the name of the tactic a target company uses when it offers lucrative severance packages to regular employees?

Question 4 4. How much protection from liability does a sole proprietorship offer?

Question 5 5. What tactic is employed by a target company if it attempts to dilute the value of the shares held by the acquiring company?

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Question 6 6. What happens if a sole proprietorship takes on a second owner?

Question 7 7. Which one of the following is a cost a franchisee often must bear relating to the franchise arrangement?

Question 8 8. What document is used to govern the operations of a limited liability company?

Question 9 9. Which of the following tactics would a target company use when it acts to make itself unattractive, such as by spending all of its cash reserves or going into heavy debt?

Question 10 10. Tyler is the sole owner and stockholder of the corporation, Tyler's Tires. Two years ago, Tyler's Tires hired Anna as the CEO. If Tyler dies, what happens to Tyler's Tires?

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Question 11 11. What can be a disadvantage associated with the use of a franchise?

Question 12 12. Which one of the following do LPs, LLPS, and LLLPs have in common but is not a characteristic of a general partnership?

Question 13 13. What is the primary reason a business would decide to become a corporation over any other form of organization?

Question 14 14. What type of partnership offers no protection from personal liability for the partners?

Question 15 15. What type of partnership has a general partner who has full liability and a limited partner whose liability is limited to their investment in the partnership?

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Question 16 16. A sole proprietorship must register with which of the following?

Question 17 17. Which one of the following is a primary reason many cooperatives are organized?

Question 18 18. Which of the following governs the relationship between a franchisee and a franchisor?

Question 19 19. Which one of the following is considered a disadvantage of a corporation?

Question 20 20. Which of the following BEST defines an acquisition?

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Question 21 21. What is the best explanation of pass-through taxation?

Question 22 22. Which type of cooperative is owned and controlled by customers?

Question 23 23. Which one of the following is the partnership document that governs the rights and responsibilities of the partners?

Question 24 24. Which of the following businesses cannot be a cooperative?

Question 25 25. Which of the following is the best explanation of a cooperative?

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Question 26 26. What does someone have to file to form a limited liability company?

Question 27 27. A company using the Pac-Man defense to combat a takeover will MOST likely do which of the following?

Question 28 28. Which of the following best describes a franchise?

Question 29 29. What do you call the documentation that governs the corporation's activities?

Question 30 30. Which of the following is a unique challenge to taking a franchise global?

Business Ownership Types Lesson Plans Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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