What is the most popular form of business ownership in the U.S.?
Sole proprietorship
True or False?
A franchise is a contractual relationship between the franchisor and the franchisee.
True
True or False?
Members of the board of directors of a corporation are elected by shareholders.
True
What is a business that exists because of an arrangement between the owner of a trade name or trademark and a person who sells goods or services under the trade name or trademark?
Franchise
What is a group that comes together for the explicit purpose of financing a specific large project?
A syndicate
For purposes of federal jurisdiction, a limited liability company is considered a citizen in _____________.
Every state in which its members reside
In ________, the franchise operate under the
franchisor's business name and act subject to the franchisor's standards and methods of business operation?
Chain-style business operation
Investor-owners of a corporation are called __________.
Shareholders
True or False?
Under Islamic law, a partnership and its partners are one unit.
True
What is a business organization governed by a group of trustees who operate the trust for the beneficiaries?
A business trust
What would likely be formed by farmers who want to pool certain crops together to ensure that they get a high market price
for their crops?
A cooperative
In a limited partnership which of the following assume unlimited personal liability for the debts of the partnership?
General partners
How is a limited liability company formed?
By filing Articles of Organization in the state in which the LLC is established.
What is true regarding corporations other than S corporations?
1. The corporation must pay taxes on profits
2. Shareholders must pay taxes on dividends they receive from the corporation.
In a limited partnership who has no part in the management of the business?
Limited partners
True or False?
A sole proprietor is considered a separate legal entity.
False
True or False?
Officers of a corporation are hired by the shareholders.
False
What governs partnerships in many states in the absence of an express agreement?
The Uniform Partnership Act
True or False?
S corporations are formed under federal law.
True
Under the Uniform Limited Liability Company Act, an LLC will dissolve after the passage of _____________ consecutive days during which the company has no members.