PLACE Business Education: Types of Business Ownership 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!

Page 1

Question 1 1. Which one of the following is a cost a franchisee often must bear relating to the franchise arrangement?

Question 2 2. Which one of the following is NOT a way that a Limited Liability Company is like a corporation?

Question 3 3. Which one of the following is the partnership document that governs the rights and responsibilities of the partners?

Question 4 4. What document is used to govern the operations of a limited liability company?

Question 5 5. What does someone have to file to form a limited liability company?

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Question 6 6. Which of the following is the best explanation of a cooperative?

Question 7 7. Which tactic would a target company use to stall an acquisition in hopes that a better company comes along to buy it?

Question 8 8. Which one of the following is not a characteristic of a consumer cooperative?

Question 9 9. Which of the following best describes a franchise?

Question 10 10. What is the primary reason a business would decide to become a corporation over any other form of organization?

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Question 11 11. Which of the following governs the relationship between a franchisee and a franchisor?

Question 12 12. Which of the following BEST describes a merger?

Question 13 13. What is the difference between an S-corporation and a C-corporation?

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

Question 15 15. Which of the following BEST defines an acquisition?

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Question 16 16. How much protection from liability does a sole proprietorship offer?

Question 17 17. Which one of the following do LPs, LLPS, and LLLPs have in common but is not a characteristic of a general partnership?

Question 18 18. Which one of the following is considered a disadvantage of a corporation?

Question 19 19. What can be a disadvantage associated with the use of a franchise?

Question 20 20. What do you call the documentation that governs the corporation's activities?

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Question 21 21. 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?

Question 22 22. Which of the following describes the income tax treatment for a sole proprietorship?

Question 23 23. Which one of the following is a primary reason many cooperatives are organized?

Question 24 24. Which of the following is the best explanation of the main difference or differences between a limited partner and a general partner?

Question 25 25. A sole proprietorship must register with which of the following?

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Question 26 26. Who can manage an LLC?

Question 27 27. Which of the following is a unique challenge to taking a franchise global?

Question 28 28. Which of the following businesses represents a sole proprietorship?

Question 29 29. How can a hostile takeover potentially be illegal?

Question 30 30. What's the name of the tactic a target company uses when it offers lucrative severance packages to regular employees?

PLACE Business Education: Types of Business Ownership 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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