Business Law: Chapter 20

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  1. What is the most popular form of business ownership in the U.S.?
    Sole proprietorship
  2. True or False?

    A franchise is a contractual relationship between the franchisor and the franchisee.
  3. True or False?

    Members of the board of directors of a corporation are elected by shareholders.
  4. 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?
  5. What is a group that comes together for the explicit purpose of financing a specific large project?
    A syndicate
  6. For purposes of federal jurisdiction, a limited liability company is considered a citizen in _____________.
    Every state in which its members reside
  7. 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
  8. Investor-owners of a corporation are called __________.
  9. True or False?

    Under Islamic law, a partnership and its partners are one unit.
  10. What is a business organization governed by a group of trustees who operate the trust for the beneficiaries?
    A business trust
  11. 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
  12. In a limited partnership which of the following assume unlimited personal liability for the debts of the partnership?
    General partners
  13. How is a limited liability company formed?
    By filing Articles of Organization in the state in which the LLC is established.
  14. 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.
  15. In a limited partnership who has no part in the management of the business?
    Limited partners
  16. True or False?

    A sole proprietor is considered a separate legal entity.
  17. True or False?

    Officers of a corporation are hired by the shareholders.
  18. What governs partnerships in many states in the absence of an express agreement?
    The Uniform Partnership Act
  19. True or False?

    S corporations are formed under federal law.
  20. Under the Uniform Limited Liability Company Act, an LLC will dissolve after the passage of _____________ consecutive days during which the company has no members.
Card Set:
Business Law: Chapter 20
2015-03-08 23:11:01
Business organizations

Business organizations
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